Of course it could be the camera. Maybe it's a cheap one with a poor quality lens, but it is more than likely that the reasons lie elsewhere. Here's some reasons why your photos may look blurry and what to do about them.

Camera movement:

In the more than 50 years that I have been taking photos, I have seen more photos blurred by camera movement than by anything else, my own included! Users of lightweight cameras are particular prone to this problem. That's the law of inertia at work. If you lean on a heavy object, it doesn't move. If you lean on a light one, it does. Thus it is easier to move the camera while taking a picture if it is lightweight and most digital cameras are not only lightweight but also small.

To eliminate motion all together, use a tripod. If you have to take the picture handheld, brace your elbows against your body to steady your arms, take a deep breath and hold it. If your camera has a viewfinder use it in preference to the LCD display on the back of the camera. Squeeze the camera button gently. Many digital cameras give an audible signal before they actually take the photo. Be as still as you can after you hear that signal and press the button the rest of the way.

Another answer to the problem of camera movement blur is found in a few cameras which have "image stabilisation". If you are contemplating the purchase of a new camera, check out the Panasonic range with this feature and compare the results against other similarly priced cameras that do not have image stabilisation.

There is one situation where you will want to move the camera. If you are trying to photograph a fast moving object, swing the camera gently in the direction of the object's motion as you take the picture. The background of the photo will blur, but the object will be rendered sharper than it would be a stationary camera. The overall effect, when done correctly, should convey a sense of the speed the object was travelling.

Dirty lens:

Keep your lens covered when not in use and never touch the lens surface with your fingers. Follow the camera maker's instructions when cleaning it. Most photo dealers can sell you a blower brush that will let you gently brush and blow away dust.

Flare:

If you shoot in the direction of a bright light, such as the sun, your picture will be degraded by flare. Try to shade the lens so that the bright light doesn't strike the lens surface, unless you are after a special effect caused by the flare.

Grain:

Many digital cameras have a digital zoom. This produces the same effect as enlarging your picture with the computer. It should be used sparingly and not on shots that you want to make large prints of. If you have an optical zoom as well as digital zoom, try to confine your zooming to the optical one. Getting as close as possible to your subject will help. It may even be possible to switch off the digital zoom, preventing you from "accidentally" using it.

Enlargement:

If you do large prints from your photos, there are limits before the picture degrades. As a rule of thumb 2 MB is enough for an A4 print, 3 MB for an A3 enlargement. If you enlarge portion of your picture, then the end result needs to be reduced proportionally. For example, half of a 2 MB picture enlarges to A5 instead of A4.

Use the maximum resolution (pixels) that your camera is capable of, get as close to your subject as possible, and use optical zoom if necessary. You will then have a picture that needs a minimum of cropping and enlargement and which has maximum detail. That means greater sharpness in your finished enlargement.