Updated: 15 October 2009

So you’re looking for a brand new compact digital camera but are totally confused by all the options available to you? CNET Australia is here to help with our comprehensive guide to choosing and buying a compact digital camera.

If you’re confused about any of the terms discussed, make sure to read over our primer on digital camera basics.

This guide covers compact cameras only. If you’re looking for a digital SLR, make sure to check out our super guide or our guide to the best digital SLRs for beginners.

Why choose a compact?

Because they are:

• Portable, go-anywhere
• Convenient
• Easy to use
• Cheaper than their SLR equivalent

All is not equal in compact cameras though. There are three main types you’ll come across and it comes down to their form factor:

Ultra thin

(Credit: Sony)

These sorts of cameras are quite common now, touting a slim chassis and lightweight body. The trade-off though is sometimes you won’t get as many features on these cameras as a more regular sized one – for example, you might have to forego a wide-angle lens and you will definitely pay a premium for the small size. Companies that make cameras in ultra-thin profiles include Canon, Sony and Nikon.

Standard compact

(Credit: Panasonic)

More run of the mill than the other two types here, the standard compact makes up for the middle-child syndrome by being more affordable, often more fully featured and having a more standard design.

Superzoom

(Credit: Canon)

These are a sort of bridge camera between compact cameras and digital SLRs, perfect if you don’t want the hassle of interchangeable lenses but still want the flexibility of having lots of different focal lengths to choose from. Typically these cameras will range from anywhere between 15x optical zoom all the way up to 26x. All of the big brands make superzoom cameras.

Megapixels

A pixel is the smallest component that makes up a digital image. The megapixel value you’ll find written on your camera simply means how many pixels (or photo sensors) are on your image sensor. The mega denotes one million.

A camera’s megapixel count relates to the resolution of the image it is able to produce. Unless you are aiming to make very large prints of your digital images, more often than not a 10- or 12-megapixel sensor will produce a large enough file for you to work with for 10×15cm prints all the way to A3 size.

Most manufacturers have (fortunately) stopped the race for more megapixels and concentrated their efforts on improving the image processing engine inside the camera itself, as well as improving the optics (lens).

The table below shows the equivalent megapixel to resolution conversions. Note these are calculated based on a standard 4:3 aspect ratio – which is related to the image sensor.

Lenses and zoom

The next thing to consider is the lens that your new camera comes with. This is arguably the most important part of the camera as it does the most work in forming the picture. A bad quality lens will more often than not equal bad quality pictures.

Though a 3x optical zoom is now somewhat standard, if you want to get closer to your subjects there are a few manufacturers that offer a longer lens in a compact body. Panasonic’s ZR1 and Olympus’ Mju 9000 offer an 8x and 10x optical zoom respectively, in slim profiles.

A full explanation on the sorts of lenses (standard, wide-angle, telephoto) on compact cameras can be found in our digital camera basics article.

LCDs and viewfinders

Unlike megapixels, when it comes to LCD screens, bigger is always better. Not only will you be able to avoid squinting to see your pictures as you review them, the extra real estate means that your image won’t be cluttered with menu options and visual overlays taking up your space.

It also makes it far easier to share pictures with others on the fly, especially if you’re the type of person to inspect every photo you take. The average screen size is now around 2.7 inches, though 3 inches is becoming more and more standard.

Every camera will come with an LCD screen, but not all will come with a viewfinder. Still a remnant from the old days of photography, viewfinders have slowly been pushed out of camera specs to make way for larger screens, but you can usually still find them on superzooms and some standard compacts. Viewfinders are great for when there’s glare and it’s too bright to see through the LCD screen, or when you’re trying to squeeze out more photos on a low battery.

If you’ve decided you definitely want a viewfinder, you have another decision to make – viewfinders come in two flavours, the traditional optical type and the electronic variant.

Watch our video to discern the differences between each.

Shutter lag

Have you ever experienced the phenomenon of pressing the shutter button on your camera to take a picture, and the camera only takes the photo after a considerable delay? That’s shutter lag, where the camera determines the exposure and focus after you press the shutter button (unless you have already pressed the shutter button halfway). Compact cameras are getting better at reducing shutter lag to let you take more instantaneous photos, but they still have some way to go before they are as good as digital SLRs in terms of responsiveness.

For our picks of cameras with short shutter lag, check out our round-up.

Touchscreens

The touchscreen camera has been a little bit of a gimmick in the past, with manufacturers including them on some high-end models to pad out an otherwise lacklustre feature set.

Manufacturers who make touchscreen cameras include Sony and Nikon. Some will require the use of a stylus for the best performance. The technology has matured a fair amount, thanks also to their prominence on mobile phones, but you will still pay a premium for a tactile interface. The learning curve can also be steep depending on the design of the interface.

Playing Sherlock

Along with the plethora of terms you’re faced with, from megapixels to ISO, you also have to wade through a myriad of detection modes.

Some of the most common functions include face detection, smile detection and scene detection. Essentially, detection modes make the camera take a little bit more control in determining the correct exposure in automatic modes.

For example, face detection generally works by the camera sensing a face in the frame and then prioritising that face over the rest of the frame, adjusting the exposure accordingly.

Image stabilisation

While image stabilisation was a nice optional feature extra on many compacts from a few years ago, shaky hands everywhere can now rejoice as it’s definitely a standard on pretty much all cameras sold today.

Some companies will market it as Vibration Reduction (Nikon), anti-shake, Mega OIS (Panasonic), or SteadyShot (Sony). Regardless of the name, all mean the same thing – reducing camera shake.

Do you need HD video?

If you have the equipment to edit and store your HD videos, having this functionality is a definite advantage. For most purposes though, unless you want to replace your camcorder with your still camera, you can probably get away with standard VGA resolution clips (640×480 pixels) that most compacts come equipped with.

Find out more about compact cameras with HD video in our round-up.

Storage options

All compact cameras use a memory card to store images. Most on the market will use SD or SDHC (Secure Digital/Secure Digital High Capacity) format, which come in several capacities. Others will have some in-built memory.

Some camera manufacturers like to lock you into a proprietary format. Sony, for example, mostly use its own Memory Sticks, and Olympus uses xD picture cards, though the company is migrating to cross-compatibility with adapters that allow you to use microSD cards. Bear in mind these proprietary formats are often more expensive and more difficult to find than their SD and Compact Flash equivalents.

Batteries

Generally, cheaper cameras or superzooms will be powered by AA batteries. Though AA batteries are much more convenient when you are on the road without easy access to an electrical outlet to charge your Lithium-ion unit, they’re a lot more expensive and, unless you use rechargeable AA’s, environmentally unfriendly in the long term.

So while you may save a little bit on the cost of the camera in the short term, add up how much a lifetime’s supply of batteries will cost you.

Optional (but nice) extras to look for

Manual control: this is a bit of a rarity on compact cameras, but you can sometimes find it on high-end models or superzooms. If you are a keen photographer who knows their way around exposure and need a small camera to complement your dSLR rig, check for this option.

The advantage of having manual control on a compact camera means you are able to tweak exposure to adapt to changing conditions where the camera’s in-built program or automatic mode may not be able to cope. Some cameras like the Panasonic Lumix DMC-LX3 come with manual controls.

Warranty and after-sales support: while this is a bit of an obvious statement, get to know your camera’s warranty and where you can go to for help should something go wrong post-purchase. This may entail returning the camera to the manufacturer’s service centre (often only in one capital city in the country) involving some expensive freight costs that you may have to bear.

What other things do I need to buy?

Before you hand over your cash on a shiny new toy, make sure to look at what else comes in the box with your camera. More often than not you’ll find that your camera comes with a wrist strap at the very minimum. Others will have a soft carrying pouch or other protective case.

If not, this is something else to consider, especially if it looks like your camera is susceptible to bumps and scratches.

Some cameras now have HDMI output, allowing you to connect your camera to your television to view your photos or video. More often than not you won’t get a cable included in the box so factor that in as an additional purchase if you want to make use of this feature.

And if after all this you’re still confused as to what camera is best for you, check out our digital camera round-ups.