The Lumix DMC-LX3 is the third compact digital camera from Panasonic to offer a 16:9 ratio image, following on from the original LX1 model that was released back in 2005 and the LX2 in 2006. The Panasonic LX3 additionally offers more conventional 3:2 and 4:3 ratio images via a switch on the lens barrel. Other great improvements on the Panasonic DMC-LX3 include a brand new 10 megapixel, 1/1.63-inch CCD sensor, Venus Engine IV image processor, 3.0-inch LCD screen with a 3:2 aspect ratio and 460K dot resolution, and extended ISO range (80-3200). The Panasonic LX3 also has a wealth of options that will appeal to the more serious photographer. It features a 2.5x, 24-60mm wide-angle lens with a very bright maximum aperture of F/2.0 at the 24mm setting, optical image stabilizer, full range of manual exposure controls, compact all-metal body, 2.5fps continuous shooting and support for both JPEG and RAW image formats. Panasonic have certainly made some bold claims about the LX3, stating that it offers “the highest image quality in compact camera history”. And with a rather hefty price-tag of £399 / $499.95, you’d expect the LX3 to be near the mark. So does the Panasonic Lumix DMC LX3 significantly improve on the popular LX2 model, and is it the right compact digicam for you?

The Panasonic DMC-LX3 is a handsome yet understated camera, available in a choice of shiny silver or the more serious black. It’s a fairly compact camera, although it is quite wide (over 10cms) and more importantly quite deep too. The specifications claims that the LX3 is 27.1mm deep, but this doesn’t take the lens into any account. The true depth is actually 45mm, which means that whilst the LX3 is still pocketable, it’s a tighter squeeze than the official figures suggest, and therefore more at home in a small camera bag than in a pocket. The LX3 is extremely well-built, with a high quality all-metal body and controls.

The overall design is dominated by the lens on the front and the large 3 inch LCD screen on the back. The built-in flash is particularly neat. It pops up out of the top of the body when you open it, and then is stored safely away by pushing it back down. Panasonic have also added a flash hotshoe, which as you’d expect accepts either an optional flashgun, or more unusually the External Optical Viewfinder (more on this later). Another neat feature is the joystick, which allows you to set apertures and shutter speeds, control manual focusing and access the Quick Menu. It’s quite an innovative idea that speeds up using the camera, which Panasonic now feature on a number of other models. Slight negatives in terms of build quality include the cover for the battery compartment and SD card slot, which feels a little insubstantial and is locked using a cheap plastic switch, and the tripod socket is positioned in the bottom-left corner of the camera, which doesn’t make it very stable on a tripod.

Speaking of image quality, Panasonic have made some incredibly bold claims about the LX3, which unfortunately are a little off the mark. We found that the new 10 megapixel sensor does deliver better image quality than all other current Panasonic compacts (and much better than the LX2), but marginally so, despite the physically bigger sensor and pixels. Once again noise is the main problem. I’d be happy to use ISO 100-400 for most photos, with ISO 800 reserved for low-light situations. ISO 100-400 isn’t a particularly versatile range, but the usual excellent optical image stabilisation system means that the Panasonic LX3 Digital Camera is still an adaptable camera, as you can take a photo at a faster ISO speed and therefore a slower shutter speed, and still get sharp results, without adversely affecting the battery life too much. The fastest speeds of 1600 and 3200 are only worth using for quite small prints. Another issue that I noticed was over-saturation of reds and oranges, with mid-orange flowers in one picture taking on an almost red appearance, when using the Standard film mode setting in both JPEG and RAW mode. In all other aspects, the LX3 certainly delivers on its big promise, with virtually no signs of chromatic aberrations, accurate white balance (you can even set the exact colour temperature in Kelvin), superb macro and low-light capabilities, and an effective pop-up flash.

Panasonic have focused on making the DMC-LX3 appeal to as wide an audience as possible, with an enhanced Intelligent Auto mode that achieves excellent results in most situations with very little input required from the user. This is backed up by the usual extensive range of scene modes and handling that won’t scare the inexperienced user away. One of the successes of the LX3 is that it will suit both the avid snapper and the more cautious members of your family. HD video is less of a success. While it sounds great on paper and fits in well with Panasonic’s vision of an HD-enabled home, the DMC-LX3 is no match for an entry-level dedicated video camcorder, and also suffers from muffled sound-quality and huge file sizes that quickly fill your memory card. 720p HD video in a pocketable camera is still a nice-to-have feature, but don’t buy the DMC-LX3 solely because of this feature alone, especially as you’ll have to buy the optional component cable to link up the LX3 to your high-def TV.

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