Inside Nokia's S&M dungeon
Gizmodo has a great photo gallery up of the Nokia Damage Test Labs, where they bake, burn, spray, drop, bend, crack, freeze, acid dip, explode and otherwise maim mobile phone prototypes, all aimed to scientifically gauge the precise conditions under which they can deny you a warranty repair.
A Look At The Nokia Damage Test Labs [Gizmodo]

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And here I was thinking they did this for safety reasons.
Safety? Cell phones will give you face cancer. Can`t imagine safety is a top priority. It`d be like testing cigarette packs to make sure they don`t give you paper cuts.
Well a cigarette pack won't blow up in your pants if it gets hot.
Well, a lot of the tests are for design review as well, to ensure that their prototype(or final) holds up and won't have issues when subjected to true abuse: actual users.