Zhang Xiaojun, Huami's vice-president, said: "In the next three to five years, we will see explosive development of intelligent wearable devices, across multiple spheres." The Amazfit is designed to serve as a supplement to the Mi band, rather than being simply a substitute, he said.

Many of the participants, including media and industry insiders, at the launch ceremony think the price is lower than their forecast. "We are the very first designer of this kind of fashionable band, and its price will be hard to compete against."

Cao Yuqin, a senior analyst at Forrester Research Inc, said: "It's good to see that the Amazfit has been given several new elements, which will give more people reason to buy it. Sales in the first three months after launch will be vital for Huami, he said.

The IDC report said that price and functionality remain the determining factors on what constitutes a "smart" or "basic" wearable, and the gap between them is expected to widen over time.

"For vendors focused on basic wearables, the challenge will be to compete with the additional features being offered by smart wearables, while still turning a profit," the report said.

With its long list of functions, and being able to run third-party apps, the Amazfit was "absolutely a smart wearable", Huami's Zhang said, and remained confident it will keep catching up the market leader Fitbit in product sales