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I think TheOtherHobbes' statement about iPhones giving old SLRs a run for its money is quite insightful -- not as a pure technical comparison, but more about what consumers value from cameras.

The Nikon D1h, Canon 1D, etc... definitely has better bokeh, dynamic range, perspective control, etc than even the best smartphone camera on the market the today, but consumers just don't care that much about actual photographic quality. They see a DSLR today and think "bulky", "another set of batteries I need to charge", and "how do I share photos to Snapchat with that thing?"

Most smartphone cameras are more than good enough for daylight shots, selfies or Instagram, and if you are not into photography, that's good enough.

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