With the emmergence of the iPhone 3G S that packs video support, there have been a few articles cropping up suggesting that Flip mightn't survive in the face of their "new" competition.

The fact of the matter is, phones have been able to do video for years. In the UK video-calling phones (which first emerged about 5 years ago) are rampant, but there still seems to be a market for the Flip range of point-and-shoot video cams. Why is this? Because people don't particularly like using their phones for video at the moment.

Phone imaging quality (in Britain at least) has been the butt of jokes for quite a number of years now, and from my own personal experience, people really don't feel comfortable with recording meaningful footage on their handsets.
What this means then is that there is a market for the cheap-and-cheerful dedicated handheld video cam at the moment.

Until we see mobile phones with the video prowess of the N93, and until regular folk in normal cities can walk around with their iPhones at arms length recording decent footage (without being mugged), there will still be a place for the eminently pocketable Flip.