Smartphones are already a viable alternative to the detriment of the compact camera segment. I personally only use my R5/lenses where using my smartphone wouldn't get acceptable shots given their computational photographic algorithms. Canon are happy with the M product line but focusing (boom tish) on FF/R mount for long term profitability and selling more RF lenses
My bad, I should have worded and clarified that better. I'm quite aware that smartphones have pretty much replaced the traditional small sensor point and shoot and compact superzoom consumer market cameras. What I meant to say was the higher end of the "compact" market, such as large sensor fixed prime cameras like the Fuji X100 series, or other higher-end compact zooms such as the Canon G1Xmkiii or Sony RX100 series.
I don't think smartphones are quite there yet. But technology is advancing at an incredible rate in this sector with computational algorithms and periscopic zoom lenses. I wonder how long the high end fixed lens market will last.
FWIW, I remember when I started working for Canon Business Service around 10 years ago, we were told in a briefing back then that consumer compacts were a dead market because of smartphones, but they needed to keep making them as there was still enough of market share of people who still wanted them. I'm quite surprised they didn't team up with a phone manufacturer to develop phone camera technology. They must have thought it an area not worth pursuing.