You overlooked that I listed the actual sensor sizes above! The iPhone's sensor is almost 3 times the area of the Kodak's. In general, small inexpensive consumer cameras use small sensors to keep the price low and to make it easier to add a large (5x) optical zoom in a small package. (Larger sensor = larger lens).
You're right and I should have elaborated a bit more. I was referring more generally to camera sensors vs phone sensors, in this comparison, it applies less, but im still willing to bet that the lens and the individual pixels in the kodak contribute.
