The Mi 4 will feature a Qualcomm Inc Snapdragon 801 2.5Ghz processor and 5-inch 1080p screen, said Lei Jun, Xiaomi's chief executive, at a launch event in Beijing.

Founded in 2010 by Lei, Xiaomi seeks to cut costs by eschewing brick-and-mortar stores in favor of web-based distribution and word-of-mouth marketing.

Xiaomi chose to launch Mi 4 on the day its flagship Mi3 is launched in the Indian market. Mi 3 is exclusively available on Flipkart. Xiomi claims of receiving 100,000 registrations ahead of its release.