The Xperia Z, which follows the Xperia T as Sony's lead mobile phone, is billed as the "best of Sony in a premium smartphone".
The full 1080p HD 'Reality' display measures a whopping 5 inches on the diagonal, larger than the 4.8-inch screen in the Samsung Galaxy S3.
Sony has fitted it with Mobile BRAVIA Engine 2 for extra brightness and clarity, harnessing its expertise in TV displays.
Unveiled at the Consumer Electronics Show (CES) in Las Vegas, the Xperia Z has been engineered using premium materials with an "OmniBalance design", featuring rounded edges and smooth reflective surfaces on all sides.
The body is 7.9mm thick, but is made more durable with tempered glass and anti-shatter film on the front and back. It is also claimed to have the highest levels of dust and water resistance in a smartphone.
Under the hood, the Xperia Z has a 1.5Ghz Snapdragon S4 Pro quad-core processor with 2GB RAM. Users can access 4G LTE connectivity for superfast mobile internet speeds.
Following complaints about battery life in the Xperia T, the Xperia Z comes with Battery Stamina Mode that is claimed to improve standby time by four times (based on Sony's testing) by automatically shutting down battery-draining apps when the screen is off.
The 13-megapixel camera on the rear shares capabilities with Sony's digital cameras and features Exmor RS for mobile, an image sensor with HDR (High Dynamic Range) for smartphones.
HDR technology can deliver images with stronger backlight without needing a flash, meaning users can access shaper pictures and video in most conditions. The Xperia Z also has a front-facing 2.1MP camera capable of taking 1080p video.
Sony has leveraged its entertainment properties for the phone, including a pre-loaded Walkman app providing access to all the user's downloaded music, along with a library of 18m songs in Music Unlimited and 100,000 movies and TV shows in Video Unlimited. Facebook has also been integrated in the phone.
The Xperia Z is NFC-enabled and Sony has added a range of features that work with its other NFC gadgets, such as being able to touch the phone on the new range of Bravia TVs to instantly enjoy stored photos and videos on the big screen.
"With Xperia Z, we are bringing over half a century of innovation in TV, imaging, music, film and gaming to create a superphone experience that truly stands out," said Kuni Suzuki, the president and chief executive of Sony Mobile Communications.
"With great specifications, Sony's media applications, One-touch functions and outstanding battery life, Xperia Z is well positioned for leadership in the smartphone market.
"By putting smartphones at the heart of our strategy, Sony is enabling people to create, enjoy and share content and experiences like never before."
Available in purple, black and white, the Xperia Z will be released in the first quarter of 2013, alongside the Xperia ZL, offering similar features but in a smaller form factor and presumably cheaper price.
Both phones will launch on Android 4.1 Jelly Bean but will be upgraded to the latest 4.2 version shortly after launch.
Vodafone has already said that it will offer the Sony Xperia Z in the UK when it launches. Pricing and availability will be released in due course.