So while Apple is ramping up production of the iPhone 3G, it looks like the rest of the cell phone industry is in a serious slump. Kind of. According to the NPD, (via Ars Technica) only 28 million cell phones were sold this quarter representing a 13% year-to-year decline. But looking specifically at the model-by-model numbers, it looks like everyone is enjoying success on Motorola's dime.

"Quarterly unit-sales of handsets fell to their lowest level, since NPD begin tracking the category in 2005," NPD director of industry analysis Ross Rubin said in a statement. "Even so, most major manufacturers picked up market share that was lost by Motorola."

But it's not all bad news for the industry. Phones with QWERTY keyboards saw a 28% increase in sales and smartphones increased sales by 9%. The average price of a cell phone sold increased by 14% to $84 year-to-year. Consumers are more likely to spend more money on a handset since the iPhone was introduced and that feeling extends toward Blackberries, HTC devices, etc.

In related news, MobileSafari has been on an absolute tear since the release of the iPhone 3G. According to Analysts, (via MacDailyNews) MobileSafari has nearly doubled its market share to 0.31% since the launch. Doing rudimentary math, having more handsets on the market that are twice as fast as the old one, well, I guess it adds up.

And to top it all off, our friends at Engadget have created an iPhone specific web page. Why, you ask? Because in 2008, the iPhone/iPod Touch Family has accounted for nearly 96% of all mobile views on their full Engadget site. That's just jaw dropping.

So that's the state of the industry. Surprised that the iPhone 3G has had such an effect on the numbers? What's to come?