Smartphones are growing. But not because they're used for games...the games on the iPhone are terrible. Most are dollar mini-games that could never and will never stand up to a console or handheld game.

And the 3DS was doing bad at the beginning of its lifetime, but nowhere near how horrible the sales of the PSVita are at this moment.
And now, the 3DS has been on the top of the charts for months.

Like I said, people who have no interest in games will continue to pay a few dollars for some cheap games on the iPhone.
But people who want to play games (And the gamer population is huge, and always growing) will continue to buy video games and video game consoles.

And you clearly said something about the video game market, because you equated smartphone sales with the PSVita not selling.