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Xiaomi has been such a success partly because it massively undercuts its rivals. Its latest flagship, the Mi 4, sells for just £189. But it boasts market-leading specs.

It has a 5-inch screen with a higher resolution than the iPhone 5S. On the back is a Sony-made 13-megapixel camera. It’s no slouch on the inside, either.

A 2.5GHz quad-core Qualcomm Snapdragon 801 chip buddies up with 3GB of RAM to offer blisteringly fast performance.

In other words, it’s faster than the Samsung Galaxy S5, but costs a fraction of the price.

The companion Mi Band wristband is also very affordable – it costs just £7.50. That’s about a tenth of most fitness trackers, yet it has all the same skills.

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Xiaomi is one of the biggest phone companies in the world, but it’s relatively unknown on these shores.

So what does it do? And how has it been so successful in only three years of selling its own phones?

It may be relatively unheard of here in the west, but Xiaomi is absolutely huge in its native China.

Market research company Canalys recently named it the world’s sixth-biggest smartphone seller. It also ranked Xiaomi the third-biggest in China, behind Samsung and Lenovo.

It was only formed in 2010, and didn't start making its own phones until a year later. Yet it’s already sold 57.4 million smartphones.

Earlier this month, Samsung – the world’s biggest mobile phone vendor – forecast a drop in profits, and even slashed the pay of its top execs to compensate.

The reason? Increased competition from Xiaomi and other Chinese rivals.