Digital Camera Types
Ultra compact digital cameras
Ultra compact digital cameras are capable of taking quality images. They are lightweight, easy and convenient to carry. These tiny cameras often have less controls and features than other compact cameras. They may not even have a viewfinder. Buttons and dials are small and can be difficult to use. Can be more expensive than compact models.
Compact digital cameras
Consumer-level digital cameras are compact, lightweight and easiest to use. Great for point-and-shoot photo-taking. Very good image quality. Low to moderately priced, depending on features and number of megapixels.
Prosumer digital cameras
These digital cameras sport high quality lenses and advanced features for creative control. Some models have mega telephoto zooms lenses while others have wide angle lenses. They accept accessories and add-ons including converter lenses, filters, remote controls and external flashes. Some zoom models have image stabilization. Prosumer cameras are moderate to high priced
All-in-one digital camera with professional grade sensor
In 2005, Sony introduced a ground breaking digital camera, the Sony Cypershot DSCR1. It is the world's first all-in-one digital still camera that has a professional-grade, APS-class image sensor and gives a live preview while shooting. High priced.
Digital Single Lens Reflex cameras
dSLR cameras, used by professionals and photo enthusiasts, are top-of-the-line. They have outstanding optics, produce high resolution images and accept interchangeable lenses and sophisticated accessories. They function automatically but also have a full range of manual controls. These cameras may not come with lenses, which must be purchased separately. High priced to very expensive.
Single Use digital camera
Bring the camera back to the shop where you purchased it and they will make prints. Inexpensive but not if you use them a lot. Not widely available.
Source
http://www.digicamhelp.com/buying-guide/camera-types/
Things to ask before buying a digital camera
1. Return policies
What is your policy if I decide to return the camera? Is there a restocking fee?
2. Megapixels
How many megapixels does the camera have? Will it be enough for the maximum size photos I plan to print?
3. Features
Are there any features that set this camera apart from others? Does it have auto features for focus, exposure and white balance?
4. Shooting capabilities
Does the camera have both point-and-shoot and advanced shooting capabilities? Does it have manual controls?
5. Focal length
What is the focal length of the zoom lens? What is the 35mm equivalent?
6. Zoom
Is the zoom optical (a true zoom)? Does the camera have a digital zoom (a simulated zoom) and, if so, can it be turned off?
7. Modes
Does the camera have a macro mode for close-up photos? What are the other scene modes?
8. Memory
How does the camera store photos? Is the storage built-in, removable or both? What type of memory card is used? Does the manufacturer recommend using a high-speed memory card?
9. Image storage capabilities
Is a memory card included in the purchase? If so, what is the capacity? How many images can be stored on it at the highest resolution; at the lowest?
10. Battery type and cost
What types of batteries are used in the camera? Are they standard or proprietary? If proprietary, what is the cost to purchase an extra battery and where can I purchase it? Can the camera also use standard alkaline or lithium batteries?
11. Included accessories
What cables are included with the camera? What other accessories are included in the price?
12. Software
What software comes with the camera? Does it include an image editing program?
13. Grey market
Is the camera grey market? If so, does it have a warranty and is it eligible for authorized repair in my own country? Are camera drivers and video and electrical components compatible in my country?
14. Warranty
What type of warranty does the camera have? How long is it? Does it cover both parts and labor for the entire time?
15. Extended Warranty
Does the warranty cover both parts and labor? Does it cover anything beyond mechanical and electrical failures and defects in workmanship and/or materials? Can it be renewed or transferred to a new owner? Does it have a "no lemon" policy? Can it be cancelled and, if so, will I receive a pro-rated refund?
16. Service and Support
If the camera ever needs repair, can I have it done locally or must I mail it? Will service be done by an authorized repair service center? What is the typical turn-around time? Does the manufacturer offer phone or online technical support for the camera?