Xiaomi has released its new Android phone called the "Red Rice" which cost 799 Renminbi or $130. The specifications of the phone are at par with the latest innovations, and can compete in terms of price. A Chinese commentator said that the price is so aggressive that it can compete well with top mobile brands, so it can be called as the "Blood Rice."

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Apple recently stated weak earnings from China in the quarterly report. The iPhone was once a popular mobile gadget but is now losing sales to other mobile brands. Apple still does not have a contract with China Mobile, the leading mobile operator in the county.

The Apple's chief executive, Tim Cook, visited Beijing recently to close the deal, but there was no announcement of the said move.

IPhone was the most sought-after phone but it now loses over Android. Some of the reasons are its "lock-in" system which does not allow apps access to other gadgets. This makes Chinese customers switch easily to a phone that has more compatibility function. Also, the iPhone needs to have an upgraded look, as other mobile companies continue to innovate the physical features of their phones.

Most experts believe that even Apple has favored China Mobile, it may still has a challenging task to win the customers over the new Android phones. To take action, Apple is rumored to plan a mobile gadget that is cheaper than the conventional ones.

Google's operating system for Android phones are not used in China, so its production may not have any effects in Google's revenues. However, it may also affect Apple as the world's biggest mobile carriers.

With the current economic status of China, one sector is still stable, and that is the internet. It has provided China a good return on investments brought about by the increase usage of mobile gadgets, particularly in the China game development industry.