This is usually used as an argument for why the Japanese decided to colloquially shorten 携帯電話 ("keitai denwa", hand-held telephone) into just 携帯(hand-held, or handy) instead of just calling it 電話(phone) like so many western countries do or 携電("kei-den"), which follows a more typical pattern for abbreviations in Japanese.
However, with the success of the iPhone, which was incompatible with all the featurephone services a new segment arose consisting of iPhones and non-backward compatible Android handsets, and these are denoted as "smartphones" shorten to スマホ(sma-pho).
I think it is interesting that they chose to move closer towards the "phone" moniker, than staying with the focus on hand-held.