Nokia announces the Lumia 925 to compete with HTC One and iPhone 5

Aluminium chassis and £480 price tag pits phone against high-end rivals, but limited to 16GB storage

Nokia has announced the Lumia 925, which features a PureView camera but sticks with a dual-core processor and low storage in the firm's latest bid to gain smartphone market share.

The Nokia Lumia 925 is different to its Lumia 920 predecessor as it boasts an aluminium chassis like two of its competing devices, the iPhone 5 and HTC One. This houses the handset's 4.5in 1280x768 ClearBlack touchscreen display, which the company claims offers the most vibrant experience of any smartphone.

Other specifications include Microsoft's Windows Phone 8 operating system, a dual-core Qualcomm Snapdragon 1.5GHz processor, a 1.2MP front-facing camera and 16GB of internal storage. The handset also comes with wireless charging support in the form of snap-on cases.

The 8.7MP camera on the rear of the Lumia 925 comes complete with Nokia's usual Carl Zeiss Lens, Xenon flash and optical image stablisation.

Nokia's new Smart Camera software application will make its debut on the Lumia 925 before coming to the other Lumia handsets this summer in an upcoming software update. Jo Harlow, EVP of Nokia Devices, claimed the app allows users "to take the most fabulous action shots", and its features include Best Shot, which is similar to Blackberry's Timeshift feature, a face-switching mode and the ability to add motion blur to photos.

Nokia also boasts that Hipstamatic's new app will be available on the Lumia 925, ahead of its arrival on the Android operating system, although there's still no mention of Instagram.

The Nokia Lumia 925 will be available in the UK from June on the Vodafone network, priced at around €469 (£400) before taxes and subsidies, taking the price to around £480 SIM-free.