A physical and virtual phone mobility system enables application tasks and resources to be shared between a mobile device and a desktop device by hosting a virtual mobile device on the desktop device when the mobile device is determined to be within a predetermined proximity of the desktop device. The local resources available to the mobile device that are typically used to perform a given application task are compared with resources that are available to the desktop device. At least partial execution of the application may be transferred, along with some state information in some cases, from the mobile device to the desktop device based on the results of the comparison according to one or more transfer rules.