People stand near a logo of Xiaomi ahead of the launching ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014.REUTERS/Jason Lee

It appears like Xiaomi is inspired by Apple's recent move to release 4-inch iPhone SE at a time when its counterparts are craving for big-screen devices. The Chinese technology giant is reportedly working on a small screen device with latest technology currently available in the market.

A report by Phandroid has claimed that Xiaomi is working on a mysterious smartphone with a 4.3-inch screen and a 720p display. The picture published by the website shows the new phone with a fingerprint and a front glass panel. It is also powered by a Qualcomm Snapdragon 820 processor, comes packed with a 32GB of internal storage and a 3GB RAM, and mounts a 13MP main camera. 

The report went on to say that the phone has just a 720p display but its ppi (pixel density) will be 341 owing to small screen, which means its display will be sharp. It is also reported that the handset will come with a price tag of 1799 Yuan (around $272 / Rs. 18,400).

Xiaomi is yet to confirm the report, but, if true, it will be a drastic move for the company that has been caught up with big screen devices. Its releases releases like the Redmi Note 3, the Mi 5 and the Mi Max have screen bigger than 5-inch.

It is also reported that Xiaomi is working on two devices with model number 2016030 and 2015115, believed to be the Redmi 3A and the Redmi Note 3 successor respectively. These handsets have been spotted on Chinese telecom equipment certification authority TENAA, are expected to sport screens bigger than 5-inch.