In addition to the flagship Lumia 920, Nokia also announced the new Lumia 820, based on the same 1.5GHz dual-core Snapdragon S4 CPU but with a smaller 4.3-inch OLED display.
In the case of the Lumia 820, Nokia scrapped the unibody design seen on Lumia 920 and at 123.8x68.5x9.9 mm and 160g it is certainly a good looking smartphone. As noted, Nokia Lumia 820 features a smaller 4.3-inch 480x800 AMOLED screen but lacks the PureMotion HD+ feature seen on the Lumia 920. The good side of the story is that it still has same Synaptics' Super Sensitive Touch technology so touch will be usable with fingernails or in gloves.
Behind the 4.3-inch screen is the same Qualcomm 1.5GHz dual-core Snapdragon S4 CPU and 1GB of memory but Lumia 820 only features 8GB of internal storage. Thankfully, this one does feature a microSD card slot so storage is expandable. The main feature of the Nokia Lumia 820 are the exchangeable covers that will be available in a wide range of colors. The exchangeable covers, that will be, of course, sold separately, will also bring NFC and wireless charging to Lumia 820.
The Lumia 820 will also run on Windows Phone 8 OS, feature a 1650mAh battery and support LTE at launch. It also comes with a 8 megapixel rear camera with Carl Zeiss optics but will not share the same PureView brand with Lumia 920 so it will not have any of those fancy features.
Same as the Lumia 920, the Lumia 820 is expected in "select markets" in Q4 and will probably end up cheaper than its bigger Lumia counterpart, mostly due to the lower resolution screen.