This is an interesting read: The Visual Science Lab.: Has the bubble burst? Is that why camera sales in N. America are down by 43%?
A couple propositions are made; the saturated camera market is being taken over by smartphones with cameras and, the art genre of photography is being revealed as a dead-end. While both may be happening (I believe the former more than the latter), one would think these would lead to a gradual erosion of camera sales. However, in the past year there has been a huge decline in sales, a decline unprecedented in recent history.
I certainly can see that smartphone cameras have improved to the level that the occasional picture-taker might decide not to purchase a dedicated camera. While I use my iPhone 5 to take random snaps here and there, it would be the last tool I'd reach for if I wanted to record a lasting memory, like the kids graduation, etc. I don't know what to make of the "dead-end" proposition. The "art" that I practice is primarily for my personal gratification, no different that if my hobby was target shooting, bowling, or wood-carving. Each could put a little change in my pocket, but the passion would be the driving factor.
So I am curious how other photography enthusiasts and "real photographers" (ie, primary income from photography) might explain what has happened to the market.