Originally posted by Aristophanes
1. Smartphones are not cheap.
2. Cameras in phones are.
No, smartphones are cheap, because almost everyone gets them on monthly plans, for $20 onwards.
Can you get a real camera like that, on 24 months plan for, say, $40 a month?
To people's minds it ends up being much cheaper, and that is why smartphones overtake cameras — not because the real cameras suck and smartphone cameras are great, but because they can get a smartphone on a contract with low monthly repayments.
People would never buy a real camera like that, because camera is not seen as a necessity.
And how people buy cameras? They first complain about prices because they must buy them outright — they can't get them on low monthly plans. Then they pull out a credit card, and then pay extra interest on the credit card purchase. In the end, camera costs them even more, and is rapidly losing value if they are not using it enough.
It is the basic go to market approach which makes smartphone sales booming everywhere. If we had to buy smartphones outright, for cash, they wouldn't be as popular as they are and camera manufacturers would not need to worry.