Opinion | Xiaomi low-end assault set to sputter

Xiaomi's new low-cost smartphone is likely to meet with a tepid reception after its launch in August due to recent stiff competition in the space.

Lei Jun, founder and CEO of China's mobile company Xiaomi, speaks at a launch ceremony of Xiaomi Phone 2 in Beijing. Photo: Reuters
A flood of low-cost smartphones into the China market looks set to accelerate with word that the trendy Xiaomi is preparing to launch a low-end model that will sell for just 1,000 yuan (HK$1,255). Xiaomi's new phone, called Hongmi or "Red Rice" has been rumoured for a while, and was actually supposed to launch in June but ran into unspecified regulator snags. Now media are reporting the Hongmi phones could launch this week, adding a new player to an already overheated market for low-end smartphones.
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