Actually this is what is expected from Lumia 1020’s 41 MP sensor camera. Have a look at below crop comparisons. Crop from iPhone 5’s 8 MP image is on top and crop from Lumia 1020’s 5 MP image is at bottom. Both images have been taken using Flash.
Check how especially at 200% crop level, the difference in resolved details and clarity is totally mind-blowing. These images have been taken from the same source from which we posted earlier dark room comparison test.
Lumia 1020 5 MP full-size image: iPhone 8 MP full-size image: Source
Thanks Nano for the Tip. Cheers!!