Yeah, I see it now. But then it ceases to be an issue of direct competition between high end cameras and smartphones and becomes an issue of shrinking economies

Yeah, I see it now. But then it ceases to be an issue of direct competition between high end cameras and smartphones and becomes an issue of shrinking economies of scale and scope e.g. raw material orders become smaller and lose previous supplier discounts and crappy camera designs which were "subproducts" of better designs are no longer feasible and thus all the cost falls on high-end designs instead of being split among several models.