I'm linking to Daring Fireball where you can click through to see the original article from Om Malik. It's astounding how the landscape has changed so much. Sales more than doubled from 2003 to 2007 where they enjoyed figures of 100million+ in sales. It then only took 3 years to go to about a third.
I've had a phone equipped with a camera since around 2003 I think, long before they were able to share instantly and I distinctly remember an odd Panasonic flip-phone that could only hold 10 photos total. With no way to get them off.
Modern phones have changed the photography game completely. I love using a dedicated camera but once the photo's been captured it's cumbersome to view, modify and share.
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