And why not. OK, more practical reason would be that the higher MP can then act as a sort of "digital zoom", rather than having to actually fit a teensy-weensy zoom in the phone.
What if you took that picture, and the area you want to zoom in isn't in focus?
The question should rather be which segment of camera sales are shrinking? Obviously the P&S segment. Possibly the entry-level (aka "Rebel") segment. But I do think that the more higher-end will actually show growth.
Lets go back to the graph. I'm looking at the graph provided by Dilbert (first page), lets disseminate it and look at it rationally.
First, the bar graph, it says all (sony's) still camera market will drop from 50,000 (still cameras) to 25,000 (still cameras) by 2017, keeping video camera market relatively constant.
Now, lets look at the pie chart, lets assume ILC: Single reflex is constant from 2014 to 2017, although there might be some growth. Also, there is definite growth in ILC: Mirror-less, but by how much? Its definitely not 25% of the entire pie, so lets give it a good 20%. 20% of 25,000 units sold is only 5,000. If in 2014's pie chart ILC: Mirror-less occupied 10%, its still only 5,000 units sold (10% of 50,000).
And to who must Sony sell these sensors? Canon? So with Nikon being the only potential purchaser in town, it makes sense to then make your own products incorporating your own products.
I know Hasselblad uses Sony sensors, I'm sure other companies other than Nikon uses Sony sensors too.
All I'm saying is that Sony is at a 2 Billion dollar loss already, may be even be hitting bankruptcy anytime soon...
Why invest in something that may be a losing battle?
Sony has made a niche, especially in the sensor world... but lets face it... their bodies suck.
Time to change strategies, Intel makes chips and motherboards... when have you bought an entire computer made by Intel, sold by Intel?