The optical stabilisation in the Nokia Lumia 920 (in both still and video mode) is an industry first, but there has been so little real hands-on time with the device that we haven't seen much of its output so far. Happily, Myriam Joire from Engadget was passing through Finland and managed to get hands-on time with the 920, performing the side by side video test with the Apple iPhone 5.

The iPhone 4S and 5 feature gyroscope and accelerometer-based video stabilisation, with the corrections applied digitally to the footage being encoded, making the iPhone an excellent comparison device to the Lumia 920, which tackles the problem of camera shake by physically manipulating the entire camera assembly in response to gryo inputs. 

As you can see from the side by side footage below, the full optical stabilisation employed by the Lumia 920 is substantially superior. Bear in mind that the iPhone footage is stabilised too, so the 'delta' from a typical camera phone to the output from the 920 will be immense.

From looking at the footage above, I'd also say that the Lumia's output was cleaner, crisper and more colourful. And also (when considering full frame output) slightly higher resolution, since the iPhone's stabilised footage takes the outer sections of all captured frames out of play.

Myriam's test was somewhat rough and ready, with the two camera lenses different distances from the point of holding the rig - the iPhone's camera was almost over the holding point, while the 920's was far further away. This will introduce slight differences in effect, as will the fact that the Lumia 920's stabilisation only works for up, down, left and right motion, whereas the iPhone's software-based stabilisation can cope with small amounts of rotation as well. However, for a first cut at a comparison, most viewers will get an idea of the effectiveness (and limits) of Nokia's new Windows Phone-based camera hardware.