In the last few years, a lot of my friends born after 1980 have switched from talking on the phone to texting, IM, and Facebook as the preferred method of communication. Nowadays I rarely call any friends. We're always connected on Facebook and I know what's going on in their life. As for the current smartphones, they really should be called "phones" any more, since that's the feature people use the least nowadays. Instead they should be called mini-computers.
Sure, everybody still talks on the phone once in a while to call the plumber, dentist, or credit card company. But other than that, do you still talk on the phone with friends and family?