Smartphones continue to be very popular despite the gloomy economy. While shipments of traditional cell phones in the U.S. were down almost 14 percent in 2008, smartphone shipments grew by a whopping 68 percent, according to IDC. In the first quarter of 2009, shipments of traditional cell phones were down more than 20 percent, while those of smartphones rose a healthy 8 percent.

Not quite sure what constitutes a smartphone? That's because there's no standard definition. Some folks refer to smartphones as cell phones that offer capabilities beyond voice and text, such as e-mail and web browsing. Technically, a smartphone is a cell phone that runs an advanced operating system that lets you download and run third-party applications. This is similar to the way you work on your PC.

So Many Smartphones. How Can I Choose?
The popularity of smartphones has phone companies clamoring to launch new models. Consequently, we have broader selection--but making a choice becomes more difficult. Here's a guide to help you navigate through the smartphone world.

1. Key functionality: Besides talking and texting, what is the single most important capability you want on your phone? It's really important to figure out for yourself if you are mostly interested in e-mail, web browsing, listening to music, checking out Facebook or playing games. If it turns out you don't want any of the above data services and are just interested in plain talking on the phone or texting, then save yourself some money and buy a regular cell phone.
    
2. Typing preference: Do you prefer a physical keyboard, or can you work with an on-screen virtual keyboard? With an on-screen keyboard you generally get a bigger display, unless the keyboard slides out of the phone's body. But touch-screen typing takes a bit of getting used to.
    
3. Add-on applications: The beauty of smartphones, as we said earlier, is in your ability to extend its capabilities by adding third-party applications. The depth and breadth of applications varies from smartphone to smartphone. These applications are featured in application stores or associated with the particular smartphone. For example, with iPhones you have a choice of more than 50,000 applications downloadable from the iPhone app store. With BlackBerries, you get a much smaller selection of applications through BlackBerry App World. The app store arena is dynamic, and the landscape changes over time.
    
4. Network connection: It's important to see what speed network your device can connect to, especially if you plan on surfing the internet on your phone. The 3G phones run on higher-speed networks if you are in the coverage area. Most smartphones also have a Wi-Fi capability that allows you to connect to the internet at wireless hotspots without using your cellular data plan.
    
5. Compatibility with office systems: You might have to tap into the office network or use a work application on your phone. This may require additional security and compatibility requirements for your smartphone selection.
    
6. Style, features, price and exclusivity: This part is similar to selecting any other cell phone. You'd want to check out the form factor of the phone, battery life, screen size, memory size, camera capability, GPS, etc. In addition to phone and voice/text service pricing, you'd also want to consider the monthly data plan fees. Some phones, such as iPhone or G1, are offered only through one carrier.

Select New Smartphones in the Market

1. Palm Pre: Palm, the pioneering PDA company, has come out with the most innovative cell phone I have seen since the original iPhone. Pre was first demonstrated in January at the Consumer Electronics Show. It has just launched exclusively with Sprint for $199 (after rebate) and will be offered through Verizon in 2010. Pre has an advanced new operating system, WebOS, that allows many programs to run simultaneously. The application interface is also unique. Each application is represented as a virtual playing card. Applications can be swapped in and out of the screen with the swipe of a finger. The pre has a slick "river rock" polished casing with touch-screen display. In addition to an on-screen keyboard, it also has a physical keyboard. The attention to details in this device is impressive. If the phone is set on the charger and it rings, it automatically answers the call when you pick it up and hold it to your ear. When you are talking and you set it on the charger, it automatically goes to speaker phone. Pre's application store, the App Catalog, had a limited number of third-party applications at launch. It looks like a great phone but it is the first generation of WebOS phones, so you may need an early adopter mentality.
    
2. iPhone: Apple launched the original iPhone in Summer 2007 and its 3G successor in Summer 2008. The iPhone is still is the coolest-looking smartphone, and still is offered in the U.S. exclusively through AT&T. The iPhone 3G S, announced on Monday at Apple's Worldwide Developers Conference, will be available June 19 in two versions. The 16 GB version will sell for $199, and the 32 GB version for $299. The iPhone 3G S has a faster processor and improved battery life. It has a 3 megapixel camera that also supports video and offers some video editing capability. It features the iPhone 3.0 software upgrade, offering cut and paste, multimedia messaging and voice commands to call a contact or play a song. As mentioned earlier, iPhone has the leading app store, with 50,000 applications and growing. This is a perfect cell phone for creative professionals who frequently surf the internet, listen to music, watch videos and don't mind the virtual keyboard. Additionally, Apple has just slashed the price of its current iPhone 3G to $99, which creates a huge competition in the smartphone arena for value shoppers.
    
3. Nokia E71: This is a solid smartphone at an affordable price. It has a nice display and a physical keyboard. It is relatively thin. It has a 3.2 megapixel camera, offers good access to the web and supports various types of e-mail. It supports Wi-Fi in addition to 3G network. The keys on the keyboard are somewhat small. The styling is nothing new. Overall, it is a good value for the price.
    
4. BlackBerry Storm: This is RIM's hurried response to iPhone's touch screen. It's the first BlackBerry with no physical keyboard. The design of the on-screen keyboard provides some tactile response to make typing feel more natural, but it misses the mark. There have been many complaints about the accuracy and sluggishness of the onscreen keyboard. BlackBerry released a new version of the software recently to resolve most of these problems, but I still can't get too excited about Storm. BlackBerry remains the king of wireless e-mail, but steer clear of the current Storm's path. You'd be better off today with a Blackberry Bold or Blackberry Curve.
    
5. T-Mobile's G2: This is the upcoming successor to the G1 phone featuring Google's Android operating system, which launched last October. G2 is rumored to be same as HTC Magic. The name G2 might still change by the speculated July shipping time. HTC Magic has a slick, lightweight design with nice curves. Unlike the G1, it has no physical keyboard, only an onscreen keyboard. G2 features version 1.5 of Android software (nicknamed Cupcake), which is also available on G1. Android 1.5 has a host of new features, including recording video and uploading video and pictures to YouTube, onscreen keyboard and universal search. A growing list of applications can be found at Android Market. This is a consumer-focused device.
    
6. Nokia N97: This is a high-end smartphone with lots of bell and whistles at around $700, without carrier subsidies. The official U.S. launch date hasn't been announced, but general availability is expected to be late June. The phone has a full QWERTY keyboard that slides out. It has a 5 megapixel camera and 32GB of storage. It features the Symbian operating system, and applications can be downloaded from Nokia's Ovi store. It supports 3G and Wi-Fi. Its capabilities are like a mini laptop, but its style is nothing to get excited over; it reminds me of the old Nokia Communicator I saw back in 2000.

Gotcha's:

• Palm Pre promises to be a strong contender. But there may be limitations on its supply and availability.
   
• BlackBerry Storm II. Rumors of a Blackberry Storm II, shipping in September, are circulating. But RIM has not made any public announcements.

Bottom line: The smartphone market is brewing fierce competition. which provides great variety and selection for all of us. This is definitely a hot summer to shop for a smartphone.