Within merely four years of its existence, Xiaomi has become the world’s fastest growing mobile phone vendor with an impressive track record of selling smartphones. It ranks sixth in the largest smartphone vendors globally.

The company is widely famous for creating replicas of iPhones and iPads that are almost one-third of the price of original Apple products.

This innovative creation has brought immense profits for Xiaomi in terms of massive sale worldwide, especially in price sensitive markets.

Xiaomi sold 18.7 million smartphones in 2013, which was an increase of 160 percent from the previous year. The company eyes to maintain the same momentum this year too and therefore it has fixed a target of 40 million smartphone shipments in 2014. About 25 million smartphones has already been shipped in the first half of 2014.

Experts say that India’s smartphone market is in a budding stage and the Indian customers are largely driven by price rather than brand and features. The reports show nearly 78 percent of smartphones sold in Indian market during the first quarter of 2014 fell under sub-200 USD price category. Taking advantage of the fact, Xiaomi has price tagged its flagship device Mi3 with Rs 14,999 (USD 250).

Xiaomi Mi3 is just Rs 2,000 more than the massively adopted Moto G, which has got impressive recognition in India within five months of its launch on Flipkart, the exclusive seller of Moto G. It has sold one million units of Moto G.

Xiaomi Mi3 is offering smartphone users with an impressive range of specifications including 5-inch screen, 2GB RAM, 13-megapixel camera and Snapdragon Quad-Core 2.3 Ghz processor at just Rs 14,999 (US$250).

Interestingly, smartphones with identical or similar specifications are coming within Rs, 30,000 to Rs 40,000 price range, which is about double the price of Xiaomi Mi3.

In such a scenario, it would be interesting to watch whether Xiaomi really poses threat to its competitors.