I'm not surprised phones have gutted the point and shoot market. But am somewhat confused why the hobby/enthusiast market has been impacted by phone sales. Why are all digital camera sales down so much?
We clearly have to differentiate. The market is not homogenous at all:
1. The collapse in digital compact cameras has two main reasons:
a) More than 1 billion (!) compact cameras have been sold worldwide since 2000. So everyone who wanted such a camera has at least one.
The market is completely saturated.
b) For most of these "snap-shooters" now the current smartphones are more than good enough. Therefore they don't buy a new compact camera, but just use their smartphone instead.
2. The amatuer / enthusiast market with DSLRs and DSLMs is different. The strong decline of the last years has the following reasons:
a) Market saturation. All enthusiast / hobby photographers have now at least one DSLR / DSLM.
b) In the first years, when the cameras were still quite "crappy", photographers upgraded regularly to the next model.
That is not the case anymore.
For many years now the enthusiast cameras are on a technical level on which most photographers say "that is more than good enough for me" and "I will never really fully exploit the capabilities of my current camera".
Therefore they have escaped from the "upgrading rat race" and are using their DSLRs and DSLMs for much much longer periods than in the past.
They don't see a reason to pay several thousands bucks for the tiny improvements of the new model.
They realize how expensive it is when they upgrade with every model cycle.
Most people with normal income and family simply cannot afford to buy a new DSLR / DSLM every 3-4 years.
It is not the case that by the smartphone now less people are using DSLR / DSLM.
The number of enthusiasts is still increasing with the global economic growth.
Lots of the new sold cameras are going to new enthusiasts.
But as the using periods of cameras are getting much much longer, and also lots of enthusiasts are buying used instead of new cameras to keep it affordable for them, the global sales numbers are decreasing.