Are Smartphones Secure on Wifi Hotspots?

Smartphone Security on Open Wifi Networks
Are smartphones secure on open wifi networks or are they vulnerable to attacks like PCs and laptops are?  As mobile phone users start preferring to offload data to wifi will security be the fear factor sales pitch? Hotspot shield has garnered lots of attention around the world and still remains one of the most downloaded applications for laptops.  However, is the threat the same for using on iPhone or Anroid phones?  My gut tells me its still a conspiracy similar to all of the large anti-virus companies who have benefited from the worms and viruses.  I still have yet to hear about one concrete example of a phone user getting hacked while using a smartphone at a hotspot or while offloading data from an application.  We searched for "hotspot shield" in the Android marketplace and didn't find anything.

Can smartphone users connecting to unencrypted Wi-Fi hotspots be compromised by attackers using an existing tools?  Can usernames and password combinations be captured?  We would like to hear from industry experts if this is true and we would like to see some examples or video. 

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