Xiaomi looks to muscle in on digital wristband market with low-price offering

Beijing IT geek Yao Mingyang was an early adopter of smart wristbands. He bought a fitness tracker called UP, made by California-based Jawbone, when it came on the Chinese market last year.

"It was a thrill for me to monitor my fitness and health in a timely way with such a simple device," Yao said.

But it didn't come cheap. Yao paid about 1,200 yuan (HK$1,500) - which is pricey for the tech-savvy twenty-somethings of Yao's generation. But prices for the devices are coming down, as more Chinese companies develop their own versions of the wristbands, with some selling for as little as a tenth of the coveted American brands.

Smartphone maker Xiaomi began selling its digital bracelet in July for 79 yuan, far less that what "bong", a small but key player in the market, was charging. Its smart wristband, which monitors a wearer's exercise and sleeping patterns, retailed for 690 yuan. It responded to Xiaomi's aggressive pricing strategy by introducing a 99 yuan version of the band.

"The current wearable device industry has set the price high. Xiaomi digital bracelets differ on price, but our quality is not inferior. We hope we'll start the new trend in the industry," Xiaomi CEO Lei Jun said.

Xiaomi markets its device as waterproof and says its battery can last 30 days in standby mode. It monitors exercise and sleep quality but must be paired with a Xiaomi smartphone to operate. Users can unlock their phones using the bracelet.