Xiaomi unveils phone aimed at iPhone users

Xiaomi says its new model is thinner and lighter than Apple's iPhone 6 but has the same processor performance. The Chinese manufacturer's phone is also cheaper.

Rising smartphone star Xiaomi says its new model is thinner and lighter than Apple's iPhone 6. (AAP)

Rising smartphone star Xiaomi is moving upmarket and taking aim at Apple.

The Chinese manufacturer has unveiled a new model that chairman Jun Lei said has processor performance comparable to Apple's iPhone 6 but is thinner and lighter.

The 16-gigabyte model starts at 2299 yuan ($A405), less than half the iPhone's 5288 yuan price in China.

Xiaomi, founded in 2010, passed South Korea's Samsung Electronics Co last year as the best-selling smartphone brand in China by number of handsets sold.

The new phone could add to competition for Apple in China, a market the company says should become its biggest in coming years.