It's thought the number of smartphones in the UK will hit 50 million in 2013.
Consumers spend around £1.9bn on the devices, while mobile phone firms will spend £90m advertising them.
There are more companies than ever, trying to sell you their latest handset.
Newsbeat took 20-year-old Charlotte Foot, a self-confessed phone geek, to Barcelona to visit the world's biggest mobile phone show and find out what the future holds.
Several companies have showed off their waterproofing technology at Mobile World Congress.
Charlotte was impressed by the 'dunkable phone', which survived being sat in a toilet for two hours despite having all the ports and sockets open.
"Definitely something I'd love and something I wouldn't mind paying a bit more for."
A virtually unbreakable sapphire screen was also on display.
The average mobile phone screen was 2.4 inches in 2010, but is expected to rise to 3.3 inches in 2013.
But Charlotte says she's not a fan of massive screens, and anyway: "It feels as though phones are getting bigger and more powerful, but you can still only do one thing at a time on them."
So she was impressed with a new LG phone which lets you move windows around, like on a PC, so you can for example send a text message while watching a video.
Apple is rumoured to be working on a smartwatch, which could be unveiled later in 2013.
At least one similar product has just gone on sale, which is linked to your smartphone and alerts you to texts and social networking messages.
Charlotte says she might be tempted: "I'm one of those people who has a massive bag, which is brilliant for fitting everything in but impossible for finding anything."
"But do you really want to be seen talking to your watch?
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