According to a recent interview by Sunhong Lim, VP Sales and Marketing of Samsung, digital cameras are morphing into communications devices. Already in 2012 most of Samsung cameras will have WiFi connectivity and this will become a standard feature in the coming yeas. The reason, according to Lim, is that customer are looking for a total solution to their picture taking fancy, and that includes manipulating the picture and sharing it immediately.
Clearly, young users are in the habit of sharing their pictures on line and for them it is just natural to be able to do the same thing from the camera itself and as soon as they have shot the picture.
The cloud may be the real enabler for making connected cameras a reality and in the future Telecom Operators might even subsidize cameras similarly to the way they subsidize smartphones, according to Lim.
Really, in just a few years we have seen a potential overlap of cameras and cell phones (notice that some cameras are already embedding a mike so that you can voice annotate your pictures and the move from WiFi connectivity to LTE is not a big one, in perspectives). The real question is if cell phones will kill the digital camera market (by embedding good cameras) or if the two world will coexist.
My personal bet is that most of point and shoot cameras will disappear, replaced by the cell phone, whilst the reflex digital cameras for their superior optical quality (and this requires a bulky set, something you are not going to carry around all times) will flank cell phones and probably might embed a cell phone. Or, alternatively, they will wirelessly connect to a cell phone that creates the bridge to the Web.