SeilerBird said:
Yes it hurts but it is true.
https://petapixel.com/2017/03/03/latest-camera-sales-chart-reveals-death-compact-camera/
With all due respect, the primary thrust of this article is to show that smartphone cameras have devastated the camera market across all categories, with the greatest damage being done to sales of point and shoot cameras. Yes, DSLR sales are down but, as the article notes, they have stabilized to some degree. Mirrorless alternatives to DSLRs account for only a limited number of sales.
Here's a quote from the article:
Photographer Sven Skafisk took the latest 2016 CIPA camera production data and created the chart above showing that compact cameras have continued to decline while DSLR and mirrorless camera sales seem to have stabilized a bit.
IMHO, smartphone cameras are a reasonable replacement for compact, point and shoot ones. Many inexpensive compacts used plastic lenses with limited optical capabilities and few had the pixel count of today's smartphone cameras. For people mostly interested in taking snapshots of friends or "I was here" photos to share on Facebook, smartphone cameras are wonderful. Heck, my Pixel 2 even lets me include Augmented Reality artifacts such as R2D2 in my photos if I want to spice them up a bit.
However, the principles of optics remain the same. no small aperture lens can compete with a large aperture one if your objective is cropping a small section out of a photo and blowing it up to fill a screen. Nor will a lens with a "couple" of optical elements compete with a modern zoom with more than a dozen elements made from a mix of different optical glass in order to ensure a minimum of chromatic dispersion and a flat focusing field across the entire frame.
I'm not a pro photographer by any means, but I like my photos to be more than just "I was here" shots. On our Facebook travel blog, I carefully select what I photos I post and I crop and Photoshop many of them. Sure, I could blog with my smartphone, but, to me, that would take away the "art" aspect of photography that I enjoy.
So, I'll continue to lug around my "dinosaur" camera with its 18-400mm zoom because, for me, it makes photography more than just a snapshot.