Will Xiaomi's Mi4 be a threat to Apple's iPhone 6?

Yes, it will judging from Mi4's announced price and extensive features.

Reports have it the Mi4 will retail for only US$320 and has impressive features fans think will make it the next best thing in smartphones.

Xiaomi, Inc. founder and CEO Lei Jun debuted the flagship Mi4 phone on Aug. 19. He said the phone will come with a 5-inch full HD display, a Snapdragon 801 processor with 3 GB of RAM and battery backup like the one on the Galaxy S5.

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The success of the Mi3 bodes well for the Mi4. Xiaomi sold 20,000 Mi3 units within seconds in India on Aug. 19 and there will be another sale on Aug. 26.

Previously dubbed "Little Rice," Xiaomi was the number one smartphone maker in China in the second quarter.

Market research firm Canalys said that Xiaomi already surpassed Samsung, taking 14 percent of China's smartphone market while Samsung, Yulong and Lenovo took 12 percent. Xiaomi growth trend shows it becoming a potential competitor for Apple.

Xiaomi challenged Samsung first and after overtaking it, the company is ready to challenge Apple next.

Xiaomi, however, still has a limited market outside of China but it continues to generate market demand that challenges new Apple and Samsung releases.

Morgan Stanley recommended strong investment in Apple in time for the company's biggest launch in 2014. Apple shares rose to US$100 on Aug. 19 and while it's positive for Apple, it has competitors such as Xiaomi threatening to match the iPhone 6. 

TagsXiaomi vs Apple, Xiaomi vs Samsung, Mi4 vs iPhone 6