Bought this camera as a gift for my wife. I tested it and compared it to other digital cameras and this camera won the competition. I have Panasonic Lumix DMC FP1, Panasonic Lumix DMC-FH1, Canon Powershot S500 (my eight year old broken digital camera), Powershot SD1300 IS and my Canon Rebel T1i (my DSLR. Not a fair comparison but I wanted to compare these cheaper cameras). I've always loved my old Canon S500 but I read some reviews on Revain and other sites and found the Panasonic cameras to be really good cameras at a great price. For me, image quality comes first. If you don't have it, you have nothing. Things that degrade picture quality are poor signal-to-noise ratio, lack of sharpness, poor color reproduction, and various artifacts. So I tested these 5 cameras under different conditions. I copied the jpegs to my computer and looked at the images 100% to see how good they really are. The most revealing results were obtained with average indoor lighting. This is very important if you ever want to shoot indoors. The results are as follows (from best to worst): 1) Canon T1i (1 year, ~$700), great shots even without flash2) Canon SD1300 IS (new, ~$110), very good photos for a compact Digital Camera3) Canon S500 (8 years old, $400 new, doesn't work as well as it used to) Surprisingly, it outperforms Panasonic cameras, although it doesn't shoot as well as it did 8 years ago. 4) Panasonic Lumix DMC-FH1 (brand new, ~$90) had very poor signal to noise ratio and moderately poor color reproduction. 5) Panasonic Lumix DMC-FP1 (brand new, around $80), this camera performed significantly worse than the FH1. The fixed lens is good, but produces poor photos. I also found the Canon easier to use and easier to record videos with. Nowadays, compact digital cameras are quite inexpensive. Do yourself a favor and buy a quality camera. More megapixels does NOT necessarily mean a better image, and a large optical zoom can sometimes affect lens quality and therefore image quality. Also pay attention to the size of the sensor: this can significantly affect image quality, although some manufacturers make better sensors even when comparing sensors of the same size. In my experience, Canon consistently releases high quality digital cameras.
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