moreorless said:
I would actually argue that besides competition from phones a lot of the reason why the compact market was in trouble was because competition had driven prices for basic compacts so low that profit margins were limited even if sales were high. You look back 15 years and pretty basic compacts by todays standards were selling for $400+.
The big mistake that I think was made in the compact market that left it open to phones was IMHO sticking to relatively small sensors for too long, even high end compacts were stuck with 1/1.7' sensors for god knows how many years. Sticking with smaller sensors did mean that zoom ranges could increase but I'd argue that for the majority a 24-100mmish range is really all they need. Increasing sensor size sooner would have gotten more people used to higher quality phones would struggle to equal.
The future is I'd guess a move towards larger sensored more expensive compacts but I think its now much more of an uphill struggle as your having to user users back.
I don't really think so. Everyone carries a phone with them at all times. So, the convenience of having a phone that takes pictures was just too great for camera manufacturers to compete with.
The small sensors of compacts are frankly quite impressive, so I don't think most people using a phone as a camera would have changed their habits for a larger sensor (and a larger body) camera.
Finally, the nail in the coffin has been social media and wifi. Camera manufacturers were slow to adapt to the realities of wireless posting and still don't have the most intuitive designs. The slow adoption of touchscreen and the difficulty of typing on a camera haven't helped either.
Neuro might make fun of the Facebook button on the Canon, but frankly that's what a lot of people want and expect -- the ability to upload an image to their Facebook page with a single button.
All manufacturers, including Canon, have been embarrassingly slow in adapting to the new realities. People whine about esoteric issues like dynamic range, but here we are in 2014 and it sounds like the 7DII won't even have an integrated touch screen and wifi, much less an interface that allows users to access Photoshop's new Ipad app from their cameras, do some quick edits and post pictures straight from the camera.