The Lumia 925 – unveiled in London – is lighter as a result, addressing a common complaint about the Lumia 920.
The firm has also upgraded the device’s camera, saying this is the first time such a complex technology has been put in a handset.
The launch comes a week after several investors criticized Nokia’s strategy at its annual general meeting.
Some suggested the decision to offer the Windows Phone operating system only on its top-end phones had put it at a disadvantage against rivals whose bestselling models are powered by Android.
However, chief executive Stephen Elop said the decision to focus on Microsoft’s software gave his firm the best opportunity to “compete with competitors like Samsung”.
The firm said the new model would initially go on sale in Europe and China in June, followed by the U.S. and other markets.
Nokia describes the Lumia 925 as a “new interpretation” of its predecessor, which remains on sale.
It weighs 139g (0.31lb), making it 46g lighter than the Lumia 920 – and at 8.5mm (0.33in) thick is 2.2mm thinner than the earlier model.
Its Snapdragon S4 processor and 2,000 mAh battery remain the same, but the 925 has half the amount of internal storage at 16 gigabytes. A 32GB version is, however, planned as an “exclusive” for Vodafone.
“[The earlier 920] was really about building the most innovative smartphone and putting a lot of features and functionality into it,” explained product design chief Stefan Pannenbecker.
“Here we left small things out in order to create a smaller product – for example wireless charging, which you can still have by adding on a cover.
“We have created a product that is a little bit more compact and a little bit more comfortable in the hand.”
The size of the Lumia 925’s screen is unchanged at 4.5in (11.4cm), however the new AMOLED (active-matrix organic light-emitting diode) display is slightly higher resolution than the Lumia 920’s IPS-based (in-plane switching technology) equivalent.
Read More: bbc.co.uk