'Mad Money' Spotlight: The Smartphone Sector

On last night's "Mad Money," Jim Cramer devoted a good portion of the show talking up the smartphone revolution. And why shouldn't he?

The Palm(PALM Quote) Pre hit the market last weekend to mostly good reviews. Sprint(S Quote), the phone's carrier, said in a release that the Pre broke sales records, while a JP Morgan analyst said sales likely passed the 50,000 mark in the first two days.

Apple(AAPL Quote) announced a few upgrades to its iPhone and a new entry level model price point that rivals even standard cell phones. There are even rumors that Research in Motion(RIMM Quote) may be coming out with a new BlackBerry Storm in September.

Multiple reports have been heralding this smartphone new world order, with TechCrunch calling this the summer of smartphone love.

So, what's not to love? Cramer said Wall Street may still be sleeping on the device and not recognizing it for the technological paradigm shift that it represents. Smartphones are not a simple luxury item, according to Cramer. Rather, the devices are quickly becoming a necessity, powering many of our life's needs -- surfing the web, taking pictures, sending texts, shooting e-mails, locating ourselves through GPS, listening to music and watching television.

Oh, and making phone calls.

Indeed, Cramer is calling it the first true secular growth trend in a decade. And while others are making hay about shaky economic indicators, Cramer said to remember one thing: product cycles trump all.

Apple, RIM and Palm represent the biggest phone makers at the moment, said Cramer. But for a stock play, he also recommended easing back in to the big boys slowly because of a small correction in tech.

All three were changing hands in positive territory by late morning, with the big winner being Palm. Shares were up a little over 8% on the day so far. The upward swing came after news yesterday that Palm CEO Ed Colligan will be replaced by Jon Rubinstein, a former Apple executive.

RIMM was up nearly 2%, while Apple was up 60 cents to $140.86.