Is The iPhone Hurting Digital Camera Sales?

As cell phone cameras get better and better, it just makes sense that digital camera sales are suffering. Now, camera makers are countering with a new marketing campaign designed to show the limits of smartphones, according to the Wall Street Journal.

Quite frankly, I don't think it's going to help. Most people realize that the portability of their cell phone overcomes any slight edge a smaller digital camera will provide in quality.

I consider myself serious amateur photographer, and I have a high-end Canon digital camera. Any time I know I'm taking pictures, I bring it along. But most of the time it's not with me, and thus my first-generation Apple (Nasdaq: AAPL  ) iPhone takes the bulk of my pictures these days. From an interesting street scene to a stumbling upon a deer and her fawn while running, it's always with me and ready to shoot.

I've considered getting a smaller digital camera that I can carry around, but I know I won't keep it with me, while my iPhone is always in my pocket. That's a major reason I'm going to upgrade to the iPhone 4 and its vastly superior 5-megapixel camera.
I know there are some limitations, but I won't be missing much from a small digital camera. PC World magazine tested camera and video quality in several models: "Sprint's (NYSE: S  ) HTC Evo 4G and Verizon's (NYSE: VZ  ) Motorola (NYSE: MOT  ) Droid X both sport 8-megapixel cameras, while AT&T's (NYSE: T  ) Apple iPhone 4 and T-Mobile's Samsung Galaxy S offer shooters going up to 5 megapixels."

Despite the megapixel difference, the iPhone 4 was "a clear-cut winner." And when comparing the iPhone to a run-of-the-mill digital camera, I couldn't tell the difference in several side-by-side shots in a Washington Post test.

What do you think? Does the always-with-you aspect of your phone camera make up for any shortcomings when compared to a small digital carry-along? Let me know in the comments box below.