With the Apple Watch set to launch next month, one of the company's biggest competitors could be gearing up to release its own wearable device as well. A new report claims Xiaomi is working on a smartwatch of its own along with an improved version of its $13 fitness band.

The new smartwatch will apparently feature a round face and a brushed metal design. It also reportedly includes built-in sensors capable of measuring your pulse and a customized version of the company's Android-based MiUI. Xiaomi is still working to extend the device's battery life, according to Chinese site Krypton 36.

Xiaomi is partnering with Huami, a Chinese company focused on wearables, for the new smartwatch. The two firms are also developing a second-generation Mi Band with built-in NFC. Both the new smartwatch and fitness band should come at budget-friendly prices, giving the company an edge over Apple and other international rivals.

The Chinese phone-maker already has a huge local fan base, though Apple has been expanding rapidly in the country as well. If both companies launch a smartwatch at around the same time it's unclear which device will come out on top, though there's likely room for both firms in China. The Apple Watch is expected to gobble up the luxury market, while Xiaomi could provide an alternative for budget-conscious shoppers who still want to experiment with wearable technology.