The Optio M40 features an smc (super multi-coated) Pentax 6.3mm - 18.9mm, 3x optical zoom lens with an 35mm equivalent focal length of 36mm - 108mm, the aperture range is F3.1 - F5.9. The lens is all glass and consists of 6 elements in 5 groups (4 aspherical element). When the camera is powered down the lens is retracted inside of the body and a built in cover closes to protect the lens.

It has a 9-point auto focus system with Spot Autofocus, Auto Tracking Autofocus, Pan Focus and Face Priority modes. The focusing range in Normal mode is 1.31 ft (0.4m) to Infinity; Macro - 4.0 in (0.1m) at wide angle to 3.3 ft (1.0m) at telephoto; Super Macro - 1.9in (0.05m) at wide angle to 1.31 ft (0.4m) at telephoto.

The built in flash offers Auto, Flash-off, Flash-on, Red-eye reduction; Effective Range: Approx. 26.2’ at wide, 13.1’ at tele, using ISO Auto (or up to 50.9’ in Digital SR mode).

On the back is a large 2.5 inch LCD monitor with the clarity of approximately 115K pixels. Controls on the back: On top is the zoom control, functions as the index/magnify control in playback. Below it is the Playback button. The 4-way controller lets you navigate menus and select images during playback. In record you press "Up" to enable selftimer mode, press "Left" to change flash mode, press "Right" to change focus mode and press "Down" to change recording Mode. The MENU button calls up and dismisses the menus. The GREEN button quickly puts the camera into Simple Auto (point-n-shoot) mode, in playback it functions as the Delete button.

On the top is the On/Off power button and the shutter release.

On the bottom is the PC/AV port handles both the USB 1.1 connection for download and the audio-video output for TV display. On the left side of the camera is the DC IN port (not shown) for using and optional external power supply.

The Optio M40 is equipped with approx. 21.9MB of internal memory and has a SD/SDHC card slot on the right side for optional memory cards. It's compatible with SD cards up to 4GB and larger SDHC memory cards. Data recorded on the internal memory can be copied to SD card.

The Optio M40's D-LI63 3.7v 740mAh Li-Ion battery pack provides exceptional battery life at approximately 220 images or 80 minutes of continuous playback time (using CIPA standards for testing.) This battery pack is charged in the D-BC63 AC quick charger, which requires the use of the included AC cord.