OK, I feel stupid. I work in a camera store, and sell both of these, and I own the G12. I was confusing the SX40 with the SX30HS. Yes, the SX 40 has a much larger lens than the G12.
Still, it worries me when people compare cameras or lens based solely on paper specs. Obviously a $2400 70-200mm f2.8 lens should produce better quality images than a $200 version with a 3.5-5.6 aperture.
I see people come into our store with pages of printouts comparing camera specs, but compact camera specs don't cover lens quality, just focal length and maximum aperture.
I own a Nikon D300S with an assortment of pro lens, plus a D2X and D200. I wanted a upper level compact that shot RAW. I had my eye on the S100, or the G12, but found the G12 new at a local store for $299, and liked the manual controls.
However, for zoom range, the SX40 would be a better choice.
Phil, please explain the RAW option. This looks like some kind of "Jailbreak", and DOES void the Canon warranty.
Also, from another forum post:
"By SLOphoto1 (Oct 19, 2011 at 10:21:13 GMT)
The Manual setting does NOT "offer the complete flexibility of full manual control" for the SX40. There is now a governor on it. Try to set the ISO at 400 for a night shot, and then spin the dial towards a 15 second shutter speed. It stops it at 1 second and drops the ISO to 100. Then a message appears on the LCD which says, "ISO speed is limited due to slow shutter speed." I verified it with Canon today. Canon also verified that all previous Canon cameras DID allow full Manual control in setting both the ISO and shutter speed, but no more."
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Nathan Smith