Nokia N86 8mp say that new cellphones with cameras are beginning to impact on sales of low-end digital cameras – more so with the ever increasing focus on camera quality and features in mobile phones – such as the f2.4 lens in the Nokia N86 8mp shown above, and Xenon flash in the Sony Satio.

“Handsets soon may begin to cannibalize the low end of the digital still camera market as they incorporate higher megapixels and flash capabilities,” says Pam Tufegdzic, consumer electronics analyst at iSuppli in a statement. “This is likely to occur first in Asia and Europe as consumers in these regions seem to be more comfortable with taking pictures using camera phones.”

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