It was the area where Sun was having a stronghold but now the very same company is looking forward to replace the mobile specific version of the software and this was revealed from the horse's mouth. James Gosling who is VP at Sun Microsystems:

We're trying to converge everything to the Java SE specification. Cell phones and TV set-top boxes are growing up. That convergence is going to take years.

It is expected that smart phones would continue to use several pared down version of Java for at least another ten years but the change has started to take place already. Even though the company would be giving software support for quite some time but at the same time we will also see them offering full support for Java SE in the coming months.