Out of interest, can anyone here explain for me how smartphones...

Out of interest, can anyone here explain for me how smartphones impact on their business? Just curious in reference to that paragraph I posted earlier from their FY result:

""In FY2010 Jumbuck faces continuing business challenges as users transition to smartphones and carriers transition to variable revenue models. These factors are expected to continue to contribute towards revenue and margin pressure"

Is there a major difference in the availability and pricing of apps for smartphones? Does it mean people use existing internet apps rather than mobile-specific ones for social networking?

Am interested in thoughts/comments as not my area of knowledge.