Canon will challenge the Sony RX100? EOS-M with lens sells for $399.

The Sony RX100 showed us hot to make a “real compact” camera with larger sensor. And it sounds like Canon is going to make a competitor with the same size btu with even larger APS-C sensor! CanonWatch reports that “Canon may be working on a compact camera with a large sensor. Not a successor of the PowerShot G1 X (price & specs), but a camera like the PowerShot S110 (price & specs), just a bit a larger. The camera should have a fast lens and the new APS-C 18MP sensor featured on the Rebel Sl1/EOS 100D (price & specs), and the DIGIC 6 Image Processing Unit. No viewfinder. Pricing should be less than the PowerShot G1 X when it was released. We expect Canon to announce this camera at the end of Summer 2013.“

APS-C compact of the same size of the RX100? I have to see it to believe it!

Still no rumor from the Canon EOS-M mirrorless system. But Canon is lowering the price of the camera and you can now grab it with lens(!) for $399 only at .