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SMSmileys replaces written text-based emoticons with actual emoticons. Such a small feature, but it's missing from iOS. Seeing as the iPhone is such a consumer -- and business -- focused device, it's astounding to think that the technology giant doesn't add such a simple feature.
Again: this is what jailbreaking is for. It gives you customisation -- often for free -- that you could get from other smartphones, like Android or BlackBerrys, yet retains the glamour of being an iPhone.
Compatible with: iOS 5, 5.0.1, 5.1.