NEW YORK— Even in a weak economy, Americans increasingly feel that gadgets such as smart phones aren't luxuries but necessities.

That shift has helped electronics sales weather the recession better than some other categories and helped Best Buy post a strong fourth-quarter profit Thursday on a steep sales increase fueled by flat-panel TVs, notebook computers and wireless gadgets.

Best Buy's profit rose 37 percent, and its revenue grew 12 percent. It also projected a brighter-than-expected 2010. Even though consumers faced tough challenges in 2009, CEO Brian Dunn said they often cut back elsewhere rather than electronics.

He said unit sales of TVs, notebook computers and cell phones increased enough during the year to offset significant declines in prices for some of the items.

That mirrors the industry. Americans bought 34 percent more notebook computers and 22 percent more flat-panel TVs in 2009 compared with 2008, according to NPD Group.