The beleaguered firm issues an apology after bloggers spot that footage purportedly filmed on its new flagship phone was really shot by a camera crew.
An advertisement for the new smartphone features a woman on a bicycle, supposedly filmed with and without the new OIS image stabilising system.
But in one sequence that purports to show how the woman would appear through the lens of the new Lumia 920 model, viewers quickly spotted the reflection of a camera crew in a window.
Various versions of the “faked” video have received millions of hits on YouTube, and Nokia faced a barrage of online criticism.
Nokia later issued an apology “for the confusion we created” and posted a version of the advert with the caption “simulation of OIS technology” over the offending scenes.
The Finnish company has now released what they say is an authentic “before and after” video showcasing the Lumia’s new high-quality camera technology.
Technology bloggers have also criticised Nokia for failing to say when and where the 920 or the smaller 820 Lumia models will go on sale or how much they will cost.
Reuters reported that the 920 will go on sale in November and will be a similar price to Samsung’s popular Galaxy S3 smartphone, which sell for around £400-£500.
That launch date would put the Lumia more than a month behind Apple’s new iPhone, and the model will face more stiff competition from the Galaxy and other phones powered by Google’s Android operating system.
Last week Samsung beat Nokia to the punch by unveiling the world’s first smartphone with the same Windows Phone 8 software that the Lumia 920 will use.
Industry insiders are questioning whether a Windows-powered phone will attract as much interest from software developers as Android and Apple phones.
Windows phones only support around 100,000 apps, compared with about 500,000 or more for Android devices and iPhones.
Once the world’s biggest mobile phone manufacturer, Nokia fell behind rivals in the smartphone market and has struggled to catch up. Its share of the market has plunged to less than 10 per cent from the 50 per cent share it enjoyed before Apple launched the iPhone in 2007.
Nokia has racked up more than 3bn euros in operating losses in the last 18 months and has cut 10,000 jobs.
Analysts expect the company to lose another 700m euros in the July-September quarter and to sell around 3.6 million Windows phones, down from last quarter.
Industry sources say the company will slash the prices of its older smartphones in a bid to boost demand until the Lumia series reaches the market.