Nokia has revealed a new Lumia phone, the 505, following our earlier (unconfirmed) story, specifically for Mexico and its Telcel network. It's low end - mainly because of the 4GB unexpandable storage - but is running Windows Phone 7.8, with a 3.7" AMOLED WVGA display and 8 megapixel camera. Some photos and main specs below.

Main specs:

• Windows Phone 7.8 OS
• 3.7-inch AMOLED display 800 x 480
• 8MP rear camera
• 256 MB RAM
• 4GB non-expandable storage
• 3G, Wi-Fi, Bluetooth 2.1, microUSB
• GPS, A-GPS
• Stereo FM Radio
• 1300 mAh battery
• 7.2 hours talk time (3G)
• 600 hours maximum standby time (3G)
• 36 hours Maximum playback time of music

Pricing and availability are yet to be announced. The Nokia Lumia 505 will be available in pink, black and red.

From Nokia's pages:

A unique design.

The Lumia 505 features a colorful design that is a pleasure for your eyes. It has the perfect size to watch your favorite pages, your photos, even your Microsoft Office documents.

Internet for everyone.

Share your Internet connection with your WiFi HotSpot service. Connect your other devices via your Nokia Lumia 505.

A smile is always better.

From now on everyone smiles in your photos. With Smart Group Shot, you can take up to 5 snaps with one click and pick the best bits of each to take the perfect picture. All your friends will want to take pictures with the new Nokia Lumia 505.

Upgrade in real time.

As we noted with the Nokia Lumia 510, the limited 256MB of RAM has some impact on usage:

The Lumia 510's overall performance will be a step down from the Lumia 800 and 710, but in general provides a similar level of functionality. A limited number of apps, around 1%, are unavailable for such devices, and there are some restrictions on background tasks, most notably the background agents that are often used to update third-party-app-created Live Tiles (those using push notifications are unaffected).