"Smart phones are making cell phones look kinda dumb"

jsonline.com: So much for cell phones.

Smart phones like the iPhone and BlackBerry are making phones that are only used for talking nearly obsolete.

"It's all about being connected on the go," said David J. Drzadinski, portfolio manager at Red Granite Advisors LLC in Milwaukee.

Sales of smart phones rose 45% in 2008 and are expected to be up as much as 14% this year, compared with a projected 5% decline in cell phone sales, Drzadinski said.

Much of what is driving the shift is the relatively new 3G, or third generation, wireless technology, which gives smart phone users high-speed data access.

A myriad of applications doesn't hurt either. Consumers can choose from 25,000 applications for everything from a "moron test" to an amateur surgeon game and a shipment-tracking tool at the Apple iTunes store, which has had more than 1 billion downloads in less than a year, Drzadinski said.

Carriers are subsidizing smart phones, often with flat fees for unlimited voice and data usage, because their average revenue per unit is 1.5 times what it is for a voice-only plan, he said.

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