Earlier quoted context omitted.
What market? Smartphones and high end cameras aren't really comparable. They compete in the sense that they're both able to take pictures, but they don't compete across all possible dimensions. I mean, I could be wrong, but these don't look like substitute goods. Smartphones and crappy cameras certainly are, but not not smartphones and high-end cameras. But using cheaper parts does make cameras crappier, so doing so…
>I mean, I could be wrong, but these don't look like substitute goods. Smartphones have destroyed the compact consumer camera market. There is no hyperbole there. Professional cameras? Sales of those are going down also, depending on how you define them of course (SLR is probably appropriate to call "professional")
People who buy that level of camera understand, moreso than the general public, that, for example, an increase from a 36 to a 45 megapixel sensor may be nice, but in the end the photos both cameras produce are still great and whoever sees them in print or exported for the internet would never be able to tell the difference.