Sensors are devices that measure physical quantities and convert them to signals that can be read by instruments or observers. Modern cellphones contain many sensors like microphones, cameras, GPS, touchscreens, accelerometers, and gyroscopes that have replaced the need for separate devices. The document discusses how common sensors like infrared sensors, accelerometers, gyroscopes, touchscreens, and cameras work, as well as where they are used. It notes that sensors have improved over time by becoming smaller, faster, better, and cheaper due to advances in processing technology and manufacturing.