Smart Phones have Internet access anywhere. The automatic text localization and recognition of text within a natural image is very useful for many problems. Once identified, the text can be used for many purposes. User can get current information about the product, place or boards. More exciting applications can be developed over the text extraction method with a high performance while also being computationally inexpensive. There are various methods proposed for Text Localization, text area segmentation, sign recognition and translation, Optical Character Recognition. In this paper we have described these methods. We have also compared all methods on the basis of performance and accuracy. Finally we concluded some good methods for Smartphone OCR application.