Xiaomi Corp is adopting aggressive pricing strategy to accelerate the popularity of 5G smartphones, as the Chinese company unveiled a below-2,000 yuan 5G handset on Tuesday.

Starting from 1,999 yuan ($284), Redmi K30 currently stands as the cheapest 5G-enabled smartphone in the world. Also, it is the first smartphone ever to feature the US tech giant Qualcomm's new Snapdragon 765G gaming-centric 5G chipset. The new System on Chip brings support for dual-mode 5G connectivity on the Redmi K30 Pro 5G.

The pricing beat market expectations, for many experts had estimated that below-2,000 yuan smartphones would not be available until next year. It also highlights the cutthroat competition in China's 5G market.