Fuji XF1 or Panasonic TZ40?

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I am still looking for a compact camera and have just noticed that the TZ40 is on special for £150 which brings it nearer the price of the XF1 (£130).

I would be mainly using it for when we go away on holidays. The zoom on the TZ40 does look good but I would rather have a camera that produces better image quality.

I am unsure which one to go for as they both look excellent for the price range.
 
I'm in the same situation at the moment, since my venerable Ixus 960 has finally given up.

I'm a little wary of the XF1 as I think the manual zoom lens and on/off switch is cool but would drive me nuts after a while. Also longevity could be an issue and there are a lot of reports of 'lens error' cropping up. Shame as it uses the same battery as my 3D toy W3 and I have several of those which would be convenient.

TZ40 looks like a really good option but apparently image quality may have slipped a bit since the TZ35.

Tempted to push the boat out and get a Sony RX100...
 
thanks for the response. it is a difficult choice and I was almost wanting someone to make the choice for me as I hate decisions. If I got the xf1 I would purchase the 3 year cover so reliability is not a huge issue for me as I could return it for a new one easily enough. it would be frustrating if it broke while on holiday though. I haven't seen that the tz40 has worse image quality than the tz35, where did you find that out as it may make my choice easier?
 
Thanks hartgeh. I have been looking through that thread actually, there are some amazing photos but when I have looked up pics that the tz40 have taken they look equally impressive. Its such a hard decision :(
 
I haven't seen that the tz40 has worse image quality than the tz35, where did you find that out as it may make my choice easier?

This guy makes a few vids, see what he has to say:

https://www.youtube.com/watch?v=-URyWPrCt6k

In any case, if you haven't already bought the TZ40 you might have had your choice made for you as Jessops is no longer showing it, so presumably they've finished clearing their stock.
 
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