The Asha 501 runs on a new software platform.
The phone will be launched via 60 operators in 90 countries.
Nokia also announced that Nokia Asha users will be able to access Facebook through a standalone app for free on partner operator networks.
The Asha 501 is the first Nokia device at such a low price point to use a micro-SIM.
Nokia says the Asha 501 offers 48 days in standby and 17 hours of talk time.
The phone features a 3.2-megapixel camera, WiFi, a lock screen with a glanceable clock.
The Asha 501 will be available in both single SIM and dual-SIM variants.
It has a microSD card slot.
The Asha 501 has a 3-inch QVGA TFT capacitive display and includes 128 MB of inbuilt flash memory and includes a 4GB memory card and the memory is expandable up to 32GB.
The Asha 501 has been launched at a price of $99 and should be available in India at about Rs 5,500 from June.
At an event in New Delhi, Nokia CEO Stephen Elop unveiled the latest phone in the company's Asha series - the Asha 501.