A nickname for the prepaid wireless provider TracFone, as their pricing scheme is similar to the way a crack dealer peddles his wares. They get you hooked with an inexpensive phone, then you find out their airtime cards are one of the most costly (per minute) in the wireless industry. Due to their high cost of use, CrackFones are popular with infrequent cell phone users. They're also popular with kids who can't actually afford a cell phone but want their peers to believe they have an actual, working cell phone.
person 1: "Check out my tight picture phone!"
person 2: "Nice. So what's your number?"
person 1: "Uhhh, well... umm..."
person 2: "Lemme guess, you got a CrackFone and you can't afford the minutes for it."