Stephen Elop, the former Nokia CEO who now runs Microsoft's devices business, showed off the phone in front of thousands at the company's annual employee meeting in Seattle on Monday.
The 4.7 inch (11.9 cm) screen 'selfie' phone, plus another high-end Windows Phone, are expected to launch soon, according to tech news site The Verge, which first reported the news.
The 5 megapixel camera on the front of the device is much more powerful than Apple Inc's iPhone 5, with a 1.2 megapixel front camera, and the Microsoft phone's screen is larger, making it better-suited
11 bosses who ordered the biggest layoffs in business history
Microsoft carefully dismantles Ballmer legacy
Microsoft to lay off 18,000 employees this year
Microsoft to lay off 18,000 employees this year
WAGS to riches: The 10 inspiring women superstars