A digital camera system, comprising: a digital image sensor; an optical system for forming an image of a scene onto the digital image sensor; a global positioning system sensor; a processor-accessible memory system; and a processor. The processor performs the steps of analyzing a signal from the global positioning system sensor to determine whether the digital camera system is indoors or outdoors; capturing an input digital image of the scene using the digital image sensor; processing the input digital image responsive to whether the digital camera system is indoors or outdoors; and storing the processed digital image in the processor-accessible memory system.