According to HIS iSuppli, Beijing-based Xiaomi sold more than 60.8 million smartphones in 2014, 15 percent of the Chinese market, while Apple had an 11.5 percent share.

There is speculation that Xiaomi is about to launch a new smart watch to compete with the Apple Watch. According to GizmoChina, the device could sell for 600 yuan (approximately $94).

It won't be Xiaomi's first wearable device. The company already has been selling MiBand fitness band. The MiBank tracks users' movements and sleeping patterns and is popular with Chinese youngsters.