Smartphones have replaced the postcards sent to family and friends during vacations. Something that the point and shoot alone hasn't been able to do as there are too many steps involved (Take picture, take out SD card, out in laptop, copy pictures, go to Facebook etc, upload). On a smartphone it's tap, take picture, tap, upload. Boom. Shared. Done. Most people don't care if it's a 1/3" (many smartphones) or 1/2.3" (most point and shoots) or even a 1/1.7"(higher end) sensor. Lacking of zoom is a bit of an issue, but that alone isn't enough for people to "carry yet another" device in their purses.

1" sensor enthusiasts cams are selling quite well (Sony RX series) Mirrorless and DSLR are selling well with tourists.

The point and shoot segment is done.