Today the line between a PDA and Smartphone has blurred. After all, there are full-function mobile phones with PDA capabilities and full-function PDAs with phone capabilities. In general, a smartphone is a mobile phone that is also a digital organizer with multiple ways of entering data. It offers the memory and processing power of a small computer in a mobile phone. With a smartphone, you can download corporate emails with attachments, organize and synchronize contact lists and calendars, view and edit documents, view pictures, send faxes, browse the internet, and of course, place and receive calls

According to phone manufacturer Nokia, smartphones share the following traits:

- They are based on a commercial operating system that allows third parties to develop additional applications for the device.
- Significant onboard memory as well as expandable memory options to allow users to store data and applications.
- Large, high quality display.
- Multiple connectivity options- both local (USB, Bluetooth, IrDA, WLAN) and WAN (GSM, GPRS, 3G).

Today's versions are far sleeker than their predecessors. The first smartphone, Simon, appeared on the scene in 1993. Designed by IBM and sold by BellSouth in the US, Simon was the first attempt at integrating a PDA and phone. In supported voice calls, faxing, and email, as well as stored contacts and a calendar in its 1 MB of memory. With its feature set, it was ahead of its time; however it did weigh more than a pound, was about the size of a half-brick, and cost near $900 USD.

The top three operating systems on the market are: Symbian (developed by a group of mobile phone manufacturers), Windows Mobile (Microsoft), Palm OS (Palm). In addition, Linux-based versions are available.

Third party companies have developed ways to improve the web browsing experience on the mobile phone's limited display. Considering most websites have been developed for and tested on desktop or laptop computers, the small display of the phone has presented a challenge. One solution comes from Opera; they've developed a "Small-Screen Rendering" technology that reformats web pages to fit inside the small screen without horizontal scrolling.

As the installed base of smartphone users grows, the range of available applications for both personal and work use expands. IT companies and software developers are focusing resources on creating applications for smartphones; operators are creating new mobile service packages; and media companies are creating specialized content for the mobile user.

Smartphone technology will continue to evolve over the next several years including significant improvements in processor power, memory, battery performance, and size/weight. Models will be available this year with 520 MHz processor. More phones will have 2 cameras (the additional one facing the user for videoconferencing applications). Also, some phones plan to have a graphics card for advanced video games and videos.