Nokia has announced a new entry-level Windows Phone 8 smartphone, the Nokia Lumia 620, and Pocket-lint has already grabbed and fondled the phone ahead of the UK launch in January 2013.

The immediate reaction? Funky, cute, small, fast, nippy, clever. That's just off the cuff - but you know, that's how we roll sometimes.

But that is Nokia and the Nokia 620 shows us why the company is still in business. The cheaper the handset, the better the experience - just read our review of the flagship Nokia Lumia 920 to see where we are coming from with this.

From a design point of view the Lumia 620 is as hip as it is square. The replaceable covers are fun and enjoyable - we would go for the bright green or orange - and there's internal power to match, too.

It is not just about enjoyable looks: there is substance to this package with the Lumia 620 boasting specs even the year-old Lumia 800 would be proud of.

Running Windows Phone 8, the Lumia 620 doesn't struggle in the same way budget Android devices always seem to.

The handset has a 3.8-inch LCD, ClearBlack, capacitive multipoint-touch screen with an 800 x 480 pixel resolution. A 1GHz dual-core Qualcomm Snapdragon S4 processor runs the show, while a 5-megapixel rear-facing camera is backed up by Nokia's proprietary "Cinemagraph" lens. There's a 640 x 480 front-facing camera for video calling.

Those specs mean you'll be able to do most things, including enjoy the bevy of included apps from Nokia such as Nokia Drive and Nokia Music. This might be a budget phone, but the software feature set of the Lumia 620 is flagship.

Hardware-wise, and of course you don't get the prowess of the Nokia Lumia 820 or even the 920, but you do still get NFC connectivity.

That's great, but for the most part still irreverent. Future-proofing and all that.

Other hardware specs include 512MB of RAM on board, with 8GB of storage space, expandable by up to a further 64GB through the microSD card slot, and 7GB via SkyDrive cloud storage.

The battery is 1300mAh, which is quoted as running for up to 9.9 hours of 3G talk time (14.6 hours 2G) and standby of 330 hours. Up to 61 hours of music playback is claimed before a recharge.

A variety of colours will be available, including lime green, orange, magenta, yellow, cyan, white and black, and price is estimated at $249 (£155).

Our play was brief, but we loved every minute, and we suspect kids (read BlackBerry Curve users) will love it even more when it hits operators in the new year.