An improved handheld electronic device and associated method enable the phonetic inputting of text using a reduced keyboard and transformation algorithm. The handheld electronic device and method advantageously enable the inputting of languages such as Chinese, Japanese, Korean, and the like without limitation. The transformation algorithm subjects each of a number of linguistic element permutations to an algorithm such as the Maximum Matching Algorithm or other algorithm to generate a string of words. The transformation algorithm then selects one string of words as a default textual output based on at least one of its minimal number of words and its relatively high attributed frequency value.