Nokia Lumia 635
The hard-selling points of the 635 probably lie in the newest features. Despite being a budget phone, it will come with the latest Windows Phone 8.1 OS which comes with a bundle of genuinely great upgrades.
If you're familiar with Android and iOS systems, then the the addition of the Action Center, or Notification Bar should look familiar. Simply swipe down and you'll be greeted with a swathe of notifications which you can customize to suit your needs whether it's missed calls, message or social media. There are also four default tiles on top which are also customizable.
Nokia Lumia 635
Cortana is also the other exciting feature that the Lumia 635 comes with. Despite being a beta, the AI helper worked really well.
I asked Cortana for the seven-day forecast of San Francisco in a noisy, crowded room with the phone held at varying distances - near my face and near my hip - just to see if it was able to hear me. Surprisingly Cortana picked up my question with an accurate answer, and was even able to answer more sophisticated questions without missing a beat.
It also opened third-party apps seamlessly without having the trouble Siri does with my iPhone. The transition from the question screen to app screen happened in the bat of an eyelash.
Cortana will be released "in the next few months" as a beta for Windows 8.1, and will be US-only to begin with. The full version is planned for a late-2014 launch in the US, UK and China, with other countries following suit in 2015.
Lumia 635 Word Flow
Word Flow was also another feature Nokia was eager to tout. I was told that the typing, or swiping, process takes some time to get used to but after spending 15 minutes with it and then having a colleague try it out, it still didn't work well.
Word Flow is supposed to pick up on words you type as you move your finger across the screen; you don't even have to stop to press the spacebar for the sentences to form.
It was actually a more amusing experience than annoying, though I can see it becoming irksome over time if you're trying to type out "how are you" and "Hernando" pops up every time. I suppose practice would make it easier but its definitely not as intuitive as Nokia claims.

Early Verdict

As far as budget phones go, the Lumia 635 is pretty impressive. It's a bit bulkier than expected but still feels durable. Admittedly, the flashy colors are fun and definitely eye-catching - it seems like it wouldn't be a Lumia if it wasn't like a neon sign.
It also makes the 635 looks like every other Lumia out there, but the added bonuses of Windows 8.1 and Cortana really make the phone stand out. Compared to the likes of the Moto G or the iPhone 5C - the cheaper handsets of their counterparts, it seems like the Lumia 635 has a fighting chance.