Nokia unveils Lumia 1020 Smartphone

Nokia has claimed its new smartphone "will bring new meaning to pictures" after unveiling the Lumia 1020 device featuring a 41-megapixel camera.

Launched in New York, the phone includes an enhanced zoom capability and image stabilisation technology which promises sharper images, even in low light.

The "dual capture" feature will allow a user to simultaneously take a 38-megapixel image for high quality use and a 5-megapixel picture suitable for sharing on social networks.

The Lumia 1020 - running the Windows Phone 8 operating system - will also have a new "Rich Recording" feature which is aimed at improving the quality of video and audio captured at gigs and in other loud environments.

Speaking at the launch event, live streamed to viewers around the world, Nokia chief executive Stephen Elop said the handset - which is available in yellow, black and white - can capture pictures and video of "amazing quality and amazing clarity".

"Today I'd like to introduce to you all the next chapter in smartphone photography," he said. "The Nokia Lumia 1020 will change how you shoot and how you create forever."

The phone was revealed as the Finnish firm battles to arrest a steady decline in demand for its devices and reclaim ground lost to rivals Apple and Samsung.

The iPhone 5 currently boasts an 8-megapixel camera, with the next Apple offering expected to feature 12-megapixels.

A UK release date for the Lumia 1020 was not confirmed but the phone will be available in the US from July 26, priced at 299.99 dollars (£198).