Does new iPod touch spell double-trouble for point-and-shoot cameras?

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Glyn Evans, who writes the wonderful iPhoneography blog, is excited about the new, fifth-generation iPod touch, which comes with a 5-megapixel camera that supports HDR image capture and the new Panorama shooting mode. Evans believes that it opens up the world of iPhoneography to those who don’t own or don’t want to buy an iPhone.  On his blog Evans writes:

….whilst this new Touch may not offer a physical zoom lens like a traditional point and shoot digital compact camera (neither does the iPhone), with such a vast array of photo taking, editing and sharing apps, I think this new Touch will appeal to many people both young and old, who are looking for a point and shoot camera that does more than just take photos; and should give the new breed of Android based cameras a run for their money.

I have argued in the past that iPhoneography works because it is conveninent. It also works because iPhones (or the new Android phones) have built-in connectivity and also access to apps, whether for editing or sharing. I have a pocket-sized Lumix but I rarely use it — for special occasions, I have a higher-end Lumix GF-1 with a few lenses and lately I have been trying out the Sony Nex5n, which is a really wonderful camera.

However, it is the iPhone 4S that is my point-and-shoot camera. It is also the no. 1 camera used by folks who upload photos to Flickr. (Mark Crump said in a guest post for us that he uses the iPhone for advanced photography. Check out his tips.) The new iPod Touch further opens up the market. Evans’ post made me wonder if this will only accelerate the demise of the standalone point-and-shoot digital cameras, and instead we will see the camera business become bifurcated into two segments: smartphone cameras and higher-end cameras such as the new digital-mirror marvels. Thoughts?

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