Smartphones don't have to be directly comparable to the specialist device in order to make them uneconomic. Even if they're only 50% as good, for people that ow

Smartphones don't have to be directly comparable to the specialist device in order to make them uneconomic. Even if they're only 50% as good, for people that own one, they're essentially free. So for a lot of folks who might have gotten a Flip but didn't really have a pressing need for one, they're now going to just limp along with the non-dedicated device and save $100. Suddenly your market is 25-50% smaller and you can't sell at as low a price any more... so you raise your price and make your market even smaller, or get out of that business.