Experts have praised the Lumia 1020 for taking "mobile photography to the next level" but doubt whether it will be enough of an incentive to woo customers away from Apple and Samsung. At a launch event in New York, the firm said that the camera allows users to zoom in and reframe their photos without worrying about reducing image quality.
A new feature called dual capture also enables two photos to be taken simultaneously at once - one at a high-resolution of 38-megapixels and another at 5-megapixels which is easier to share on social networks.
But the Finnish company currently trails the two giants of the smartphone market - Apple and Samsung - by a long way.
In the past two years Nokia have reportedly sold around 20 million of their Lumia devices, which run on Microsoft software.
That's compared to Apple's 248 million iPhones and Android's 800 million handsets, many of which are manufactured by Samsung.
Experts doubt whether the Lumia 1020 will entice customers from rivals The Telegraph's Consumer Technology Editor Matt Warman told Sky News: "The problem that Nokia have got is ... when consumers go into a shop, then how good the camera doesn't decide whether they're going to buy that particular phone.
"It's a great piece of engineering but is it going to be enough to save Nokia? Not of itself, no, I don't think it is."
A UK release date was not confirmed but the device is expected to go on sale in Europe in the next few months.