[potatolicious]

Even point and shoots aren't really threatened by cell phone cameras - they cover two completely separate contexts. In fact, there are few use cases where the cell phone has really stolen the show from point and shoots.

Don't get me wrong, imaging capabilities on cell phones are important and useful - but IMHO they've largely carved out brand new use cases for themselves rather than stealing from other camera products.

I think Panasonic's positioning isn't too bad. They're saying "we're not your crappy, blurry cell phone camera. If you want memories that last, buy our stuff" - which seems like a wise enough stance to differentiate themselves. After all, the really cheap point and shoots do resemble cell phone cameras in terms of quality - being above that certainly helps.