Finnish mobile phone maker Nokia has unveiled its lowest price Windows Phone 8 handset - the Lumia 620.

Adding to its line-up of Windows Phone 8 devices, which includes the Lumia 920 and Lumia 820, the budget smartphone will launch in January in Asia followed closely by Europe.

"The Nokia Lumia 620 adds more youthful appeal to our Windows Phone 8 range. Compact and fun, it takes advantage of a new 'dual-shot' technique to create a variety of interesting new colours and textures," said Nokia on its official blog.

"While this may be the most affordable of our three new Windows Phone 8 smartphones, it packs a punch," Nokia adds.

The phone is a 3G model with a 3.8-inch 800 x 480 pixels screen, 1 GHz dual-core Snapdragon S4 processor, 512MB RAM, 720p video shooting capability, a 5-megapixel front-facing camera, near-field communication (NFC), and 8GB of internal storage.

The company mentioned that the device is targeted towards a younger audience, and features Nokia Music, providing free streaming of ad-free tracks with no subscription or registration required and the ability to download playlists to listen offline.

Marko Ahtisaari, Nokia's EVP of Design, introduced the Nokia Lumia 620 at the Le Web 2012 in Paris this week. He said that the Lumia 620 puts color at the front and center of its design.

"[Nokia] wanted something that would take our pure color story and give it a burst of playfulness, mix it up a bit. What's clear is that we go from the 920 to the 620 we're softening the radius and curves," said Ahtisaari at the coference.

Nokia has been leading the charge in bringing the latest Windows Phone 8 operating system to the smartphone market. Alongside HTC, it was one of the first manufacturers to carry the redesigned OS on its handsets with the release of the Lumia 920 and Lumia 820 in November.

The LA Times reports that the Lumia 920 has been sold out on Amazon and AT&T as well as in the Australia and Germany. However, some suggest that this is because of limited supplies of the phone rather than strong demand.

The budget-friendly Lumia 620 will have a price tag of $249.