While its true that its a niche market, there are plenty of people who are going to be interested in the capabilities of the 1020's camera. If Nokia and Microsoft take the time and marketing effort to make people aware that it exists.
One of the biggest uses for smartphones has always been the camera. The best camera you have is the one you have with you. With the 1020, for most users, the camera you have with you is now the best camera you have.
Parents of young families are going to be a key area here - these are the moments that can never be recaptured and by demonstrating the capabilities of the lossless digital zoom and the Optical Image Stabilisation it should be no trouble demonstrating why the Lumia is a better choice than a Samsung or Apple phone.
There will also be those people who buy by the numbers. And a 41mp sensor is just going to blow their minds when racked up against the 13mp and 8mp cameras of other phones on the shelf at the Carphone Warehouse.
It's a small market - that's what niches are after all - but for Nokia its an important one.
Right now a Windows Phone (and a Nokia Windows Phone in particular) is the best choice if you're buying anywhere in the mid to bargain basement ends of the smartphone market. The App Store is missing too many apps to make a Windows Phone annoying more than an outsider when you're spending any more on a phone. Nokia has used phone cameras as a good differentiator for its phones in trying to overcome that handicap. With the 1020 they have a halo device that will reflect well on the other high end handsets, get people talking about Nokia again and also persuade more developers that Windows Phone is a platform worth supporting.
For Microsoft and Nokia the rate of growth may not change, but I'm sure this will be the phone that we'll look back on when we talk about the make or break moment for Windows Phone.
That's a lot riding on a single phone. Fortunately it looks like Nokia have built a device to deliver.