This explains it and shows a graphic representation comparing sensor sizes.
http://photoseek.com/2013/compare-d...5mm-aps-c-micro-four-thirds-1-inch-type/

In order to get extreme zoom out of these inexpensive pocket cameras, small, noisy sensors are used.

"There's more to optics than meets the eye."--anon

"...most of us would be better off losing half a pound around the waist than half a pound on our rifle."--dhg