>But almost any dedicated camera that isn't down in the complete crap price range will blow a cell phone out of the water, for two major reasons. I suspect thi

>But almost any dedicated camera that isn't down in the complete crap price range will blow a cell phone out of the water, for two major reasons. I suspect this is probably why you're seeing the sales numbers drop too. The big camera makers have been relying on the cheap units to bring in the money. They're transitioning now to relying on expensive, high end units instead. It's a much smaller addressable market though. At some point I think it will be largely a professional thing. Eventually the computational photography will look good enough to make up for the space constraints of a phones' lens. But the downside will be that any photo taken with your phone will look kind of samey and be poor at getting fine detail. And having your own camera with manual control options will let people feel more in control of what they're doing.