Panasonic’s Lumix DMC-S3 could be nicknamed “The little camera that could.” Despite a moderate price point ($129.99 direct) and a modest feature set, the camera takes good 14-megapixel photos and HD video. Its images aren’t the sharpest, but in real-world situations they do capture a fair amount of detail without displaying evidence of heavy-handed noise reduction. In addition, the camera comes with a nice LCD and is slim enough to slide into your pocket. The S3 isn’t without flaws, particularly when it comes to video recording, but those aren’t enough to keep it from being our new Editors’ Choice for budget cameras.

Design and Features

The S3 is impressively small, measuring just 2.3 by 3.9 by 0.8 inches (HWD) and weighing in at 4.1 ounces. Our review unit was finished in black, but fashionistas will be happy to know it is also available in violet, purple, red, and silver. It’s almost identical in size and weight to the Samsung ES80 ($99.99, 3 stars), a camera with very similar features.

The camera’s On/Off button and shutter release are located on its top, with all other controls on the rear to the right of its 230k-dot 2.7-inch LCD. The display is better than we see on most cameras in this class: Images on it look crisp, and it’s bright enough for outdoor use on sunny days. The camera includes a few direct control buttons, making it possible to set the self-timer, adjust EV compensation, and adjust flash settings without delving into the menu system. You will, however, need to hit the Mode button to change the shooting mode, which is a bit slower than using a traditional dial.

The S3’s default mode is Intelligent Auto, which cedes control of all settings except the flash to the camera. If you want to do more fine-tuning you should switch to Normal Picture mode, which lets you adjust the ISO and EV compensation. For more specialized photography the Scene Mode menu has 22 options, including optimized settings for shooting parties, portraits, food, fireworks, and sunsets.

The camera’s 4x optical zoom lens covers a 28-112mm (35mm equivalent) field of view. This doesn’t equal the 7x zoom range of the General Electric J1470S ($119.99, 4 stars), but it is wider on the short end of its range and thus better than the J1470S for using in cramped spaces. The S3’s lens has an f/3.1-6.5 aperture range, which doesn’t capture a lot of light, but the camera’s optical image stabilization system can help steady your shots.

Performance and Conclusions

The S3 scored well on speed tests. It can boot and take a photo in about 1.9 seconds, delays about 1.8 seconds between shots, and experiences 0.4 second of shutter lag. This compares favorably with the Canon PowerShot A800 ($89.99, 3 stars), which boots in 2.4 seconds, requires a 3.4-second wait between shots, and has shutter lag averaging 0.6 second.

We use the Imatest software suite to measure cameras’ performance in terms of sharpness and image noise. The S3 scored 1,614 lines per picture height in the sharpness test, which is just shy of the 1,800 score we consider to be very good. The best budget camera we’ve tested is the Canon PowerShot A800, which scored 2,127 lines. Subjectively, the S3’s images looked detailed, and weren’t hampered by excessive noise reduction from the camera’s image processing.

We also test noise at higher ISO settings; as you increase the camera’s sensitivity to light, noise also increases. The S3 snapped images with less than 1.5 percent noise through ISO 800. Comparatively, the Samsung ES80 can only meet this standard through ISO 400. This makes the S3 a decent camera for use in lower-light situations, especially when you consider its optical image stabilization system.

The camera can record 720p30 video in QuickTime format, which you can then upload to YouTube, Vimeo, and other video sharing sites without first needing to convert it. The video quality looked high, even when viewed on a large screen. The camera is incapable of zooming while recording, and there is some evidence of the smear effect, which causes a vertical line to appear to emanate from blown highlights, but I don’t think these should be deal breakers for a camera in this price range. There is no HDMI port on the camera, so you’ll need to find another way to get video to your HDTV. The camera uses a rechargeable Lithium battery for power and supports SD, SDHC, and SDXC memory cards.

Overall, the Panasonic Lumix DMC-S3 may not have a price or selection of features that will really wow you. If you place real value on telephoto capability, for example, you may want to opt for the $119.99 General Electric J1470S. Or if you’re on an even stricter budget, the $99 Samsung ES80 will work, despite its lackluster LCD and SD-only video. But the DMC-S3 offers a compact design, fine photos and video, and an impressive LCD—all for a low price. That makes it worthy of our Editors’ Choice award for budget cameras.

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