IMHO, yes, smartphone will kill the low end compact camera market, but also might increase high end compact and DSLR sales. Those user using smartphone camera most probably are not interested in photography in the first place, but once they shoot more with smartphone, they might be interested in photography and once they are interested in photography, they might buy a DSLR. Camera manufacturer should actually target those smartphone shooter by showing the different in quality and speed between a smartphone and a high end compact and DSLR.
Have a nice day.
Smart Phone Photos have won World Press Awards iPhone photos have been published on the front page of the New York Times iPhone photos have been published in Sports Illustrated The Stock Photo Agencies are seeing a demand for photos shot with Smart Phones (because of their Authentic look)
Check-out this article in the NYTimes http://www.nytimes.com/2014/10/02/technology/personaltech/smartphone-photography-evolves-with-camera-apps-and-related-tools.html
Eventually Smart Phone will kill DSLRs for many (not all) uses. BIF photographers and Professional Sports shooters will still need DSLRs and Long Lenses.
No, they really won't. There's a real feasibility problem with building zoom lenses in such a small package, so cell phones are generally limited to digital zooms. As long as that is the case, they'll never compete with DSLRs. A cell phone is like shooting with a fairly wide-angle prime all the time. Can you imagine gluing a 30mm prime lens to the front of your DSLR? 50mm, maybe, assuming you don't care about landscapes, but not 30mm.
Besides the painful lack of flexibility in composition inherent in a fixed-focal-length camera, you'll never have any real depth of field with a lens that wide and a sensor that small (excepting possible simulation thereof), and more importantly, you'll never be able to get usable shots of anything more than a few feet in front of you unless your subjects are very large (e.g. landscapes).
Cell phones are not particularly practical even in the portrait world. Outside that world, they're a disaster and a half. It's not just long zooms; you can't get a decent shot of much of anything with a cell phone unless you're right there. This mostly precludes any serious use of cell phones for capturing concerts, plays, weddings, sports, birds in flight, locations with even moderately bad light—basically any of the sorts of things people commonly use high-end cameras for, with the possible exception of landscapes shot in the daytime.
And that's why I carry a 6D with 16–35L II, 24–105L, and 70–300L lenses when I go on vacation, travel with groups, etc. Sure, with a cell phone, I'd be able to capture a few of the shots that I want to capture (along with a lot of badly smudged shots), but with a DSLR, I can get all the shots I want, without the need to rent a crane or a helicopter to get me close enough, along with a Lowel lighting kit or a nuclear warhead (depending on distance) to provide enough illumination. A cell phone simply cannot match the "keeper" rate of even a low-end DSLR from ten years ago, much less the DSLRs on the market today, and without changing the laws of physics or covering the back of the camera with a giant lens array and doing some really bizarre image processing, it never will.