China-based Xiaomi Technology expects its smartphone shipments to reach 90 million units in 2017, the company's highest annual shipments, according to company founder and CEO Lei Jun.

As part of its efforts to reach the goal, Xiaomi launched recently its entry-level model, Redmi 5A, in the China market, carrying a price tag of only CNY599 (US$91).

The Redmi 5A features a 5-inch 720p display, Qualcomm Snapdragon 425 CPU, 13-megapixel real camera and a 5-megapixel front-facing camera.

The aggressive pricing indicates that Xiaomi aims to grab market share from its rivals by ramping up shipments of its entry-level models such as Redmi 5A which feature high price/performance ratios, according to market sources.

Buoyed by increased shipments of entry-level models, Xiaomi managed to outrace peer companies Oppo and Vivo to become the second largest smartphone vendor in China in the second quarter of 2017, trailing after only Huawei.

Xiaomi aims to recapture the top-vendor ranking in the China market in 2020, Lei stated.