An automatically configurable multifunctional modular portable device and a method for configuring the same are provided. The portable device 10 includes a transceiver 20 for wireless communication with the primary user device 100 . The portable device 10 also includes a processor 40 for configuring the portable device 10 and the modular components 50 based on communications received wirelessly from the primary user device 100. A connection point 30 is provided on the portable device 10 for connecting one or more modular components 50 . Depending on the desired function, the corresponding modular component 50 (eg, cellular phone, personal digital assistant, pager, etc.) can be attached to the portable device 10. The modular portable device can be configured to communicate wirelessly with other smart devices, such as Internet-enabled appliances and entertainment devices. Additionally, when not attached to the portable device 10, the modular component 50 can be wirelessly configured to provide independent functionality.