Twins?
As you can see by the above pictures you can hardly tell these two apart. Visually they do look identical. It’s when you look under the bonnet that you can see the difference.
Differences
Sensor resolution (A550: 14.2MP, A500: 12.3 MP)
LCD screen (A550: 3.0″, 920k dots, A500: 3.0″, 230k dots)
Only the A550 offers the ’speed priority’ 7fps shooting option (A500 max 5fps)
A550 has a larger buffer (14 raw frames vs 3)
As you can see the major difference is the sensor in the camera. The 550 offers another 2 megapixels. Whether or not the price difference is worth this I am not sure. It does though also have a far higher resolution viewing screen which I must says is very nice.
The faster continuous shooting will be great for sports and fashion photographers and the larger buffer is always nice.
What are their shared features
Longer life batteries, lasting up to 1000 shots.
Articulated screens that move up and down 90 degrees.
Live viewing mode.
The longer battery life is very welcome. The viewing screen articulation is also a nice feature. I am yet to convinced by the necessity of the live view mode except for when you are taking video, but some love it.
Conclusion
Camera advice thinks these are both great little cameras. They definitely give the Canon 500D and Nikon D5000 a run for their money, especially as they are higher spec’d than both of these in most departments.
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In answer to the necessity of live view, I say that it is basically a worthless feature for going around shooting people. In the studio is another matter though. Live view, an HD monitor and hot lights makes studio photography a dream! It also impresses the clients.
I shoot product photography with Canon equipment and the 10x live view zoom for focusing is wonderful. Your shots can be more precise than any auto focus or viewfinder could ever do. I use a 27″ HD flat screen with a modified base so I can mount it to a light stand,
Live view is also good, in the studio, for group shots where all the labels must be visible and rotated forward. A priceless feature.