Do the phone cameras change the demand for real cameras?

I think the market is evolving. A lot of people are actually getting interested in photography through smartphone and want to graduate at some point to better tools also. For P&S we're still seeing demand for shockproof, waterproof camera, portable quality camera (think rx100) and powerzoom. 3 category the phone can't touch. Dslr camera with aps-c is a dying breed, being challenged by mirrorless, canon eos m will be the new rebel/T4i line. Upcoming 7D mark 2 should be the last generation of this kind of dslr. Full frame camera will stay in the same format, smaller, lighter, cheaper, 2000$ new with lens right now, that will continue to drop in the next years. Nikon has the edge right now with more affordable/consumer full frame lenses available for this new market of cheap full frame.