A digital camera includes a CCD imager. When a display-use UYV signal is
generated on the basis of an RGB signal of an object image photographed
by the CCD imager, a CPU detects a color saturation degree of the RGB
signal and reduces dynamic range of a U signal and a V signal on the
basis of the detected color saturation degree. Thus, a color on the basis
of the U signal and the V signal is aboundingly included within a color
reproducing range of a monitor.