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(Pocket-lint) - Microsoft has officially unveiled its Lumia 640 handset much rumoured prior to its Mobile World Congress press event.

It is a 5-inch device with a HD display and Gorilla Glass 3, so isn't going to rock the boat when it comes to the higher echelon of Windows Phone handsets, but it will be upgraded to Windows 10 when that software build is available to consumers later this year - it's Windows Phone 8.1 initially.

The phone runs on a quad-core 1.2GHz Qualcomm Snapdragon 400 processor with 1GB of RAM and comes with 8GB of internal storage.

On the rear there is an 8-megapixel camera with LED flash, while the front is graced by a 1-megapixel snapper for videocalling and selfies.

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It will be available in 3G and LTE (4G) versions for 139 euros and 159 euros respectively.

As expected, the company has also revealed a larger version, the 640 XL. It has a 5.7-inch HD screen and larger battery (3,000mAh). And its rear camera is 13-megapixels, which represents somewhat of a bump, and also comes with an LED flash. The lens uses Carl Zeiss optics too.

The Lumia 640 XL with be 189 euros for the 3G version, 219 euros for the 4G model.

Both phones also come with one year subscriptions for Office 365 with an extra licence for your PC or tablet, plus 1TB of OneDrive storage and 60 minutes of Skype World, which allows you to talk to people on their landlines anywhere.

Plenty of UK networks and retailers, including O2, EE and Carphone Warehouse, will be stocking the phone when it becomes available. Exact release date is yet to be revealed.

Writing by Rik Henderson.