Now only C will buy a dedicated camera. But in the late 0’s and the 2010’s, segment B did too—lots of people bought DSLRs to get better quality pictures — often sticking to the kit lens and not getting all geeky about photography… just putting everything on automatic would still offer much better quality than a compact camera or a phone camera.
As phone cameras got better, people in this market segment switched to phones — they might just care more about the type of camera on the phone than the most casual of users do.
Consequently camera sales have plummeted: https://www.statista.com/statistics/799526/shipments-of-digi...