Xiaomi launched its 2014 flagship smartphone, Mi4,  highlighting the  steel frame among other top-of-the-line specs.

Xiaomi, China's popular smartphone making company, launched its newest flagship smartphone, the Mi4, during a launch event in Beijing, Monday.

The new smartphone by "the Apple of the East" challenges the tech giants, Samsung and Apple, in emerging markets. The Mi4 smartphone is a premium handset with top-tier specs and impeccable design, all at an affordable price.

The company's CEO, Lei Jun, demonstrated the Mi4 on stage in his trademark attire - blue jeans and a black T-shirt much like Steve Jobs. It is no secret that the company's smartphones have vastly replicated the design of iPhone and Mi4 is no different. But Jun insists that the new flagship is far more sophisticated. The use of steel frame was emphasized on during the event, with a small documentary showing a piece of crude metal going through different processes before taking a fine stainless finish. Xiaomi named the event "The Artful Journey of A Piece of Steel," which suggests the importance of the premium material used in Mi4, according to Forbes Magazine.

In terms of specifications, Xiaomi Mi4 doesn't compromise. The smartphone does justice to the flagship title with its 5-inch full-HD screen, 2.5GHz quad-core processor, 2GB RAM, 13-megapixel rear camera and 8-megapixels front camera, Independent reports. The smartphone shown during the event powered the company's MIUI 5, a modified Android OS, but Xiaomi promised to launch the next iteration of the mobile OS sometime in August.

The phone maker is slowly gaining a stronger hold in the emerging markets, where its price range is of most significance. In April, the company announced that the Xiaomi phones will be made available to 10 new countries outside China, but excluded US in its expansion plans. Even with its limited availability in countries like Hong Kong, Taiwan, Singapore, Malaysia, the Philippines and India, Xiaomi has managed to steal the limelight from Samsung in the low-end market.

During the event, Xiaomi unveiled its first fitness tracker, the MiBand smart bracelet. The wearable tracks wearer's sleep and steps and also unlocks Xiaomi phones in a certain range. The company has broken the low-cost barrier again, for the wearables this time. The MiBand is priced conveniently at just $13.