Mechanical stabilisers are located in the sensor inside the camera body. The device eliminates vibration by moving the image sensor.
Advantages and disadvantages include:
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Optical stabilisers are located in the lens. The effect of camera shake on the resulting image is minimised by the lens shifting and the consequent impact on the stabilised image sensor.
Advantages and disadvantages include:
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The ideal solution for sharp images is to use a combination of image stabilisation and high sensitivity (ISO), flash, tripod or light lens depending on the environmental conditions as well as financial limitations.