During last month’s WWDC keynote address, Apple’s Phil Schiller pushed back at skeptics by pronouncing, “Can’t innovate anymore, my ass.” If that’s the case, Apple has a lot of work yet to do, especially now that Nokia’s latest phone has arrived.

Announced earlier today, July 11, the Windows-based Lumia 1020 includes a 41-megapixel camera. Yes, you read that correctly, 41-megapixels. The iPhone 5 comes with a paltry 8-megapixel iSight camera by comparison.

Obviously, a smartphone is more than the camera it includes. However, Apple has made a strong push in recent years to convince folks that the iPhone is a perfect tool for amateur photographers.

That doesn’t quite sound right anymore, no?

iPhone 5 camera specs

iPhone 5 camera specs

Assuming that the Lumia 1020 works as expected, and we have no reason to believe that it won’t, Apple and other mobile handset providers will need to step it up, and fast.

It’s probably too late for Apple to rethink the camera on the so-called “iPhone 5S,” which is expected to launch in September with a 10- or 12-megapixel camera. Thanks to Nokia’s announcement, however, the camera on the “iPhone 6” is probably already being redesigned.

Yes, Phil. It’s time to innovate again.

The $299.99 Lumia 1020 will be available in yellow, black, and white through AT&T. It has a 4.5-inch display, 2GB of RAM, and 32GB of storage (plus an additional 7GB of free SkyDrive cloud storage). Its PureView camera has a Xenon flash and an F/2.2 lens. In the front, there’s a 1.2-megapixel wide-angle camera. Pre-orders begin July 16, with sales starting July 26.