It improves on its predecessor, the Nokia 808, by coupling a 41-megapixel 2/3-inch BSI sensor with optical image stabilization (OIS) and a high resolution f/2.2 all-aspherical 1-group Carl Zeiss lens.

[12][13] A prototype codenamed McLaren (previously leaked as Goldfinger) was planned to be the successor to the 1020, but was cancelled before official launch.

It also has an adjustable shutter speed of up to 1/16,000 s. Some reviewers have noted the camera may exhibit lens flare[15][16] and minor white balance issues under particular circumstances.

Optical image stabilisation — includes new type of barrel shift actuator, which enables moving a heavy and complex full-lens assembly.

Providing "swipe-able" dials in a concentric ring display, settings such as exposure level, white balance, shutter speed and film ISO can be adjusted "on the fly" to enable changes to be visualised before a shot is taken.

Nokia hope to bring professional camera settings, once the preserve of experts, to the masses and encourage experimentation and learning using built-in tutorials.

Selecting 200 Hz makes possible undistorted recording even in very loud surroundings having high bass audio levels.

[24] Brian Klug from Anandtech stated: "I think it's fair to say that once again Nokia has basically set the bar for the rest of the smartphone imaging world – in terms of both hardware and software features.

"[25] Chris Finnamore from Expert Reviews wrote: "Simply stunning photos make the Lumia 1020 the ultimate cameraphone.

[27][28] Erin Lodi of Digital Photography Review wrote: "Despite the lower lighting level, the Nokia is able to out-perform its rivals by a healthy margin.

[29] Dan Nosowitz from Popular Science wrote: "Nokia's new Lumia smartphone has amazing hardware (especially its unprecedented 41-megapixel camera).

Nokia's sensor and lens advances must be paired with a CPU and image processor fast enough to make shooting effortless, and Windows Phone's creative app gaps need to be filled in.

[36] Some Lumia 1020 users have reported instances of rapid battery drain and overheating, random reboots or freezes, poor voice call quality or Wi-Fi drop outs.