Well -- I bought a Sanyo SCP-8100 (very small, "pocketable" camera phone) from Sprint.
However, I did not buy it for the camera (it's pretty bad, at only 352 x 288 pixels resolution).
Instead, I bought it because it has the best reception of any tri-mode (800mhz cdma, 1900mhz cdma, 800mhz analog) phone offered by Sprint (compatible with Vision - Sprint's Internet Service for your phone). I wanted a good quality tri-mode phone, for roaming to other carriers networks, when in areas where Sprint does not have coverage.
So, yes, perhaps photo phones may outsell digital cameras (although the quality of the photos is terrible). I've got a feeling that the low resolution of the phone, has more to do with bandwidth concerns from the Wireless Companies, than it has to do with cost of manufacturer. Bear in mind, that higher resolution camera phones would use more bandwidth on Sprint's wireless network. Since Sprint offers plans with unlimited Vision (like mine), I think they want to keep the resolution low on purpose -- to keep down their cost when users send/receive photos.
The camera in the phone is very bad, so I bought a Konica KD-510z (a.k.a. Minolta DiMAGE G500 -- the world's smallest 5 Megapixel Camera with a 3x Optical Zoom), so that I have a camera that I can carry with me everywhere (I carry mine in my front pants pocket).
Some photos from my Konica are here;
http://www.pbase.com/jcockfield/konica_kd510z
I read a story that says photo phones are going to out sell digital
cameras this seems absurd to me
What do you all think I feel it bogus
http://www.bytephoto.com/showarticle.php?s=&threadid=327
Greg
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JimC