There is no way to avoid bleeding competition in China'smartphone market 2014.

On the 2nd business day 2014, Xiaomi suddenly pronounce that its brand - Hongmi (Red Rice) will be 100RMB lower then former price 799RMB.

Just 1 day ago, Lei Jun, the founder of Xiaomi, released its annual report: Sold 18.7 million smartphones in 2013, about 160% up.

Chinese smartphone maker Xiaomi Corp said it sold 18.7 million smartphones in 2013, up 160 percent year-on-year, and that it officially expanded to Singapore on Jan 1, in a bid to enter the global market.

Lei Jun, founder and chief executive officer of Xiaomi, said in an internal e-mail that the company had sales of 31.6 billion yuan ($5.18 billion) last year, an increase of 150 percent over the previous year. Lei said previously that he expects the company's revenue to hit 100 billion yuan by 2015.

"Xiaomi will see shipments of more than 40 million handsets in 2014," Lei wrote in the e-mail.

The Beijing-based company, which started as a smartphone manufacturer, now also makes televisions, set-top boxes and mobile phone peripherals.

Last year, Xiaomi, which has more than 4,000 employees, hired Google Inc's former vice-president Hugo Barra.

Lei also said in the e-mail that the company set up an office in Singapore on Jan 1, in an attempt to sell smartphones outside mainland China.

Liu Wei, Xiaomi's spokesman, told China Daily that Xiaomi selected Singapore as a regional hub to expand to Southeast Asian markets.

"We don't have any specific targets for those markets yet," Liu added.

The rapid rise of Chinese smartphone vendors such as Xiaomi and Huawei Technologies Co Ltd has hampered Apple Inc's progress in China, though the US company signed a deal with China Mobile Ltd last month and is preparing to offer iPhone devices running on China Mobile's network starting on Jan 17.

Everybody knows 699RMB is targeting Huawei Honor 3C - a model by brand new Huawei smartphone team.

Anyway, the upgrading competition among Xiaomi, Huawei, Lenovo and ZTE will occupy the market share of foreign smartphone makers, such as Iphone and Samsung in 2014.