I wish I could use a smartphone camera for everything, but none of them offer depth-of-field control, which makes them unsuitable for portraits. Their tiny pinhole lenses make it practically impossible. One can fake bokeh in software, but it's not the same.
The iPhone 7 Plus will offer depth-of-field soon after a software update. However, the effect is indeed largely achieved through software. Despite that, the results can be pretty astounding. Some examples: