Disadvantages of Digital Circuits

Digital circuits use more energy than analog circuits to accomplish the same calculations and signal processing tasks, thus producing more heat as well. In portable or battery-powered systems this can be a major limiting factor, but in a situation where power is plentiful, a digital system is often preferred because of all the advantages listed above, especially that of (re-)programmability and ease of upgrading without requiring hardware changes.
A particular example is the cellular telephone, which being a battery-powered portable device, uses a low-power analog front-end to acquire and tune in the radio signal from the base station. The base station, being in a fixed location with access to the power grid, can afford to use power-hungry software-defined (digital) radio techniques that digitize the signal essentially at the antenna (after wideband filtering and downconversion to intermediate frequency) and performs all channelization and demodulation via software-driven calculations. Such base stations can be reprogrammed, potentially via remote control, to process the signals used in future cellular standards as those standards become available.

Digital circuits are sometimes more expensive, especially in small quantities.
The world in which we live is analog, and signals from this world such as light, temperature, sound, electrical conductivity, electric and magnetic fields, and phenomena such as the flow of time, are for most practical purposes continuous and thus analog quantities rather than discrete digital ones. For a digital system to do useful things in the real world, translation from the continuous realm to the discrete digital realm must occur, resulting in quantization errors. This problem can usually be mitigated by designing the system to store enough digital data to represent the signal to the desired degree of fidelity. The Nyquist-Shannon sampling theorem provides an important guideline as to how much digital data is needed to accurately portray a given analog signal.