Both cameras have small lenses that stay within the camera body at all times. Olympus chooses to include a protective cover that slides downward when the camera is in use. The cover, however, also makes it a little more vulnerable in the water. There are exposed rubber seals on the outer edges of the camera when the cover is open.
The Olympus Stylus 1050 SW has a 3x optical zoom lens with a relatively narrow 38-114mm equivalent focal range. Compare this with the Pentax 5x optical zoom lens that reaches 28-140mm: the W60’s lens is much wider and zooms in farther. More possibilities are available with the Pentax Optio W60.
Both lenses have a maximum aperture of f/3.5, which isn’t as wide and bright as many lenses on other cameras on the market but is typical for tiny internal lenses. In terms of performance, neither lens does a great job. Both show significant barrel distortion – although moreso on the Pentax - and lose details in the outer edges of the pictures. There is also quite a bit of chromatic aberration noticeable in images from the Pentax W60. Between the two cheap lenses, the Pentax W60 has the better range, but the Olympus 1050 SW has the better performance.