At an event in New York, Nokia chief executive Stephen Elop emphasized the Lumia 1020's advanced optics, which enable sharper images, even when zooming.
"You can literally find a needle in a haystack," Elop said. The new Lumia, which use Windows software, will be sold through US carrier AT&T Inc starting July 26 for $299.99 with a two-year contract, and will be available later in other markets including China, Nokia said.
Telefonica SA will be its carrier partner in European and Latin American markets, it said.
Elop said Nokia, which has suffered a fall in cash reserves after years of poor sales, said it was pooling resources with AT&T and Microsoft to market the new phone.