China-based tech manufacturer Xiaomi is turning out to be a formidable competitor in the tech world. The company launched its first low-cost smartphone offering, Redmi 1S, last year and it was an instant hit.

Now, Xiaomi is ready to launch its second smartphone in the Redmi lineup - Redmi 2. The handset is scheduled for a January 9 release in China, with a reasonable price tag of $112.

According to Christian Today, Xiaomi has retained most of the features of Redmi 1S in Redmi 2. The new handset will feature a 4.7-inch screen size with 1280 X 720 display rendering 312 PPI pixel density. Compared to Redmi 1S, the upcoming handset will be powered by a well-built processor, and a 64-chipset quad-core Snapdragon 410 clocked at 1.2 GHz.

In addition, the smartphone will be 4G capable and its 8-megapixel camera will allow users to capture videos at 1080p. The phone also comes with a2-megapixel front camera, and packs a 2200 mAH Samsung Lithium polymer battery.

It is believed that the Redmi 2 will be a great hit in China, primarily owing to its reasonable price and excellent features. A report by IBTimes says that the handset will also prove to be a bestseller in India.

In fact, Xiaomi took the Chinese handset market by storm in May 2014 when it launched the Redmi 1S. The device sold out rapidly, about one phone sole every 8 minutes after the manufacturer made it available for pre-order. Apart from Redmi 1S, Xioami also introduced its phablet - Redmi Note, which carried an affordable price tag of just $158.

On an average, Xiaomi (so far) has sold over than 60 million units of Redmi 1S alone in 2014. Now that Xiaomi has grown into a $45-billion firm, its sales are expected to increase tenfold. Since 2010, Xiaomi has grown at a fast pace and now it is planning to venture outside the country of its origin. It is already planning to sell the Redmi 2 in the Indian market and is likely to pose a stiff competition to the prevailing market leaders like Samsung and LG.