Digital cameras are becoming obsolete as people use the cameras in their smartphones.
The popularity of smartphones such as the iPhone and Google's Android has changed the electronics landscape and put the once-dominant digital camera on notice.
Sales of pocket-sized point-and-shoot cameras in Britain fell 30 per cent by value in 2011 compared with the year before, and retailers here have confirmed a similar trend.
Jason Bell, general manager of merchandise for the Noel Leeming Group, which includes Bond & Bond stores, said the impact of smartphones was most marked on sales of cheaper digital cameras.
"Consumers are comfortable with the quality of camera that a smartphone provides and do not see the need for a separate camera. The video quality ... of smartphones has also had an impact on camcorders for the same reasons."