Canon has announced the new Canon PowerShot SD850 IS (aka Canon IXUS 950 IS) which replaces the SD700 IS (IXUS 800 IS). The Canon PowerShot SD850 is an ultra-compact pocket digital camera which features an 8 megapixel 1/2.5 CCD sensor, 4x optical zoom lens and DIGIC III Image Processor. In addition, other high-tech features includes optical image stabilization, face detection for optimizing AF, exposure and flash (up to nine faces) has been added to this Canon PowerShot camera.

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The Canon PowerShot SD850 IS uses a new “PureColor” LCD display that Canon claims offers better color accuracy and brightness; the display has a multi-coated finish that resists glare, scratches and fingerprints. “The PowerShot SD850 IS Digital ELPH camera continues the strong tradition of Digital ELPH imaging excellence and eye-catching style,” said Canon senior vice president Yuichi Ishizuka of Consumer Imaging Group.

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The Canon PowerShot SD850 IS Digital ELPH camera is equipped with a 18 scene modes including new Creative Light Effect special scene mode that turns bright spots into heart and star-shaped bursts. This latest Canon PowerShot SD850 compact digital camera is available in coming June for about $399.