In what appears to be an effort to capture price-conscious markets, Lenovo has launched a budget smartphone, Lemon 3, with decent display features and pricing.

Lenovo Lemon 3 is priced at ¥699 (around $107 / Rs. 7,143), which means it will take on devices that are in the similar price range, like Xiaomi Redmi 3, Moto E (2nd Gen) (4G), Meizu m2 and others in the market.

Interestingly, the just released Xiaomi Redmi 3 comes with the same price tag as Lemon 3.

According to Lenovo website (in Chinese) (via GizmoChina), Lenovo Lemon 3 comes equipped with features like 5-inch Full HD display with 1920 x 1080p resolution (441 ppi), and is all-metal. Under the hood, it has Qualcomm Snapdragon 616 processor clocking 1.5 GHz, Android 5.1 Lollipop, 16GB internal memory, 2GB RAM, 13MP main camera, 5MP front snapper and 2750mAh battery.

In terms of connectivity, the device supports WiFi, Bluetooth, GPS and Micro USB. It's a 4G LTE enabled dual SIM smartphone with Dolby Atmos dual audio speakers.

There are several smartphones in the price range of ¥699 currently available in the market, but it appears like Lenovo Lemon 3's biggest rival would be Xiaomi Redmi 3 which has just hit online stores.

Xiaomi Redmi 3 sports a 5-inch HD display with 1280x720p (294 ppi pixel density), full-metal body and dual-SIM. It has a 64-bit Qualcomm Snapdragon 616 processor clocking 1.5 GHz, 16GB internal storage expandable up to 128GB, Android 5.1 Lollipop with MIUI 7.0, 13MP main camera, 5MP front snapper and 4100 mAh battery.