This is similar to suggesting that a Desktop computer isn't innovative because it's just a few peripherals connected to a very fast turing machine.
Some examples of Smartphone innovation (in my opinion):
At 2:00 AM in bed, when I'm exhausted, and realize I have to wake up at 7:00 AM, but I'm tired enough that I might not be able to reach my alarm clock, and I can just flex my thumb and say, "Wake me up at 6:00 AM" before drifting off to sleep - I call that innovation. I don't know if you recall, there was a time that the big "thing" at Hotels was having them give you a wakeup call, so you wouldn't have to figure out how the alarm clock in the room worked (if they had one). I haven't done that in 5+ years. Used to do it every night when I was in a hotel.
I'm out walking at night in Redwood City, and Dark Sky pops up and tells me it's going to start raining in my neighborhood in about 15 minutes - so I turn around and grab an umbrella.
I'm out at a customer luncheon in Singapore, and they ask me about a presentation I did awhile ago, on my laptop, and I know backblaze has backed it up, so I'm able to grab it while standing there from my iPhone and mail it to them - that real time delivery makes a positive impression. (Replace Backblaze with Dropbox/iCloud/SkyDrive/favorite cloud mechanism that you can connect to from your mobile device)
Listening to a great german song in a Taxi in Aschaffenburg, and I pull up Shazam - and 90 seconds later I have it on my iPhone (and it's now been synced with iTunes match and is on my iPad and Laptop)
Late at night in PaloAlto, and I need a ride home - and Uber tells me there will be a driver at the restaurant in 4 minutes, and shows them driving towards me, and makes sure they show up - As somebody who had spent hours waiting for cabs in the middle of the night - I call that innovation.
Walking down the Stairs at Southwark in London, and getting the real-time update from TubeMap, that the London Bridge station is closed due to a station fire - turning right around and grabbing a cab to an important symposium.
I could obviously go on - but I find it so hard to believe you don't recognize all of this as, "innovation"