The best thing about compact cameras is the fact that they are small and lightweight, making them convenient for everyday use. Easy to pop into a bag or some are even small and slim enough to fit into a pocket, therefore great for taking on holiday and to events where you don't want the added weight of a camera. They are more affordable than SLR (Single Lens Reflex) cameras, although prices do range depending on style, size and brand.
They all have an automatic focus function which enables you to "point and shoot", although many of the newer models do have a large variety of functions such as different colour modes, white balance, ISO selection and zoom features. Compact Cameras will also have a few different modes such as landscape, beach, portrait, night, and snow. By using these modes, the camera will enhance the surroundings without you having to worry about changing any complicated settings, but you are relying on the camera to make the judgements.
Digital SLR Cameras (Single Lens Reflex)
There are more options and features than on the compact camera, giving you complete control over things such as ISO, Shutter Speed and Aperture. The largest benefit with an SLR camera is that you are able to change the lens, and when looking through the viewfinder you are actually looking through the lens, therefore seeing a true picture of what the image will turn out like. They come in different ranges, from amateur through to professional and the price will vary, starting from a few hundred pounds up to a few thousand pounds for the top of the range professional cameras.
The disadvantages are that they are heavy and bulky, not as easy to carry around as a small compact camera. In order to make the most out of the camera you will need more knowledge regarding all the features they have to offer. Although there are some SLRs on the market for a very reasonable price now, they are still expensive especially if you buy extra lenses and equipment for them and will be a lot more expensive than a compact camera.
Summary
There are some amazing Compact Cameras on the market now which produce fantastic photos. If you are looking for something that is easy to carry and easy to use then go for a compact. If you spend a vast amount of money on an SLR and all you are going to do is use the automatic point and shoot mode then your photos will be no better than those of a compact.
If, however, you are looking to improve your photography skills and want control over shutter speeds and aperture to create different results and achieve advanced photography techniques then an SLR is the way forward.