The iPhone has a 1/3.2" sensor (9.7x crop factor), a 4.28mm length f/2.4 max aperture.
That's like a 43mm f/23 full frame (basically, apature scales with crop factor just like length); or a 26mm f/14.5 APC-C.
Compared to a 1/2.3" sensor (which the S800 is likely to pack) it's like a 6mm f/3.3 lens (43mm full frame, as they don't like to mention how apature scales). The advantage of a S800 will be the range (25mm -> uselessly long without a tripod and good light), compared to the 43mm prime iPhone; apature and image quality will be similar. Also, the Nikon will have niceties like vibration reduction, a flash (maybe), smarter focusing / metering, better processing (maybe).
The real question is, who would want one? I'd say - people with dumb phones who carry cameras; and hipsters who want to be seen with a camera while they play Angry Birds on the bus. It might be bigger in non-US markets, where phones don't appear so cheap (due to hidden carrier costs).