The Lumia 820 sports a 4.3-inch touchscreen that adjusts colour and brightness according to the light level when you're out in sunlight. You can change covers to customise the colour or add a cover for wireless charging, which means you don't need a cable to boost the 1,650mAh battery -- just pop it on a charging pad to juice up.
The Lumia 820, and its bigger brother the 920, use Microsoft's Windows Phone 8 software. Windows Phone 8 shows off a new home screen that let you resize Windows Phone's signature coloured squares. It also improves maps, voice control and support for high-definition screens -- fine for the 920, but the 820 only has a standard-definition screen.
Prices and release dates for the two new phones are yet to be confirmed, but they're due out later this year. The Nokia 820 is set to be cheaper than the flagship 920, and so is important for Nokia and Microsoft to fight back against smart phone rivals. They can't hit shops soon enough, especially as the current Lumia line-up has been cut off by Microsoft from new software updates, new apps and new features.
These are the first Windows Phone 8 phones to actually appear in the flesh, after Samsung heralded the Ativ S last week but didn't have any to show to the world. Meanwhile HTC is tipped to unveil its Windows Phone 8 phones on 19 September.
How much would you pay for a Lumia 820? Are the new Nokias genuine contenders with the iPhone and Android? Tell me your thoughts in the comments or on our Facebook page.