Let us discuss.
Hardware
Display
There’s literally no difference between the screens of the Lumia 520 and Lumia 525. Both devices feature the same 4 inch IPS LCD panel which packs a WVGA resolution of 800 x 480 pixels and returns a pixel density of 215ppi. This might not be industry rattling but considering the overall package which these phones comprise of, it is well worth your buck.
Camera and Storage
Again, no difference here. Both devices feature a 5MP camera at the rear, equipped with autofocus. Unfortunately there’s no flash, so you will have to do your photography before the day hits dusk. The cameras perform quite well in daylight, but cannot be used for anything more than casual photography. On the storage front, both devices feature a standard 8GB ROM which is not bad at all, considering most other brands from India and China offer 4GB at about the same price. Both devices come with microSD slots for further expansion.
Processor and Battery
Both devices are more or less identical save for the difference in amount of RAM. Both feature the same 1GHz dual core processor which has been lauded for the good performance it offers. The Lumia 525 takes the upper hand when it comes to RAM amount; while the 520 comes with 512MB, the 525 features 1GB which is much more acceptable for a smartphone of today. There were issues reported by users of the 520 which addressed low RAM, which is what Nokia have fixed with the 525.
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Both devices feature a 1430mAh battery which is better than it sounds. It has enough in it to take you through one work day with utmost ease.
Conclusion
Even with a price difference of around 2000 INR, the Nokia Lumia 525 looks better thanks to the better RAM it packs. As mentioned at the start of this article, there’s virtually no difference between these two low-cost devices apart from the RAM. If you have a budget of over 8,000 INR and are looking for a Windows phone, you should definitely go for the 525 at least. The 520 can miss your consideration because 512MB RAM would be like going back in time.