Xiaomi has today announced a new and improved version of its Redmi smartphone, the company's best-selling handset so far. The Redmi 2 has a faster processor, 4G connectivity, and an 8-megapixel camera — and it still costs under $150 off-contract.

Xiaomi's original Redmi smartphone, which was announced in July 2013, sold an incredible 18 million units during its first 12 months on the market, while the larger Redmi Note phablet sold 3.56 million units. These impressive figures meant the Redmi family alone accounted for a third of Xiaomi's total sales as of July last year.

It's no wonder the Chinese company is continuing to improve the Redmi smartphone, then. While many of the internal components of the Redmi 2 are carried over from its predecessor, there are some nice improvements in places. The device boasts a 4.7-inch 720p display, a quad-core Snapdragon 410 processor, 1GB of RAM, and 8GB of internal storage.

The Redmi 2 also has an 8-megapixel camera on its back, a 2-megapixel camera on its front, and dual SIM card slots with 4G connectivity. It will also be available in two new colors — Lime Green and Powder Yellow. Perhaps the Redmi's most impressive stat, however, is its price tag.

Like the original Redmi, the Redmi 2 was designed to be incredible affordable. When it goes on sale in China on January 9, it will cost just 699 yuan, which is approximately $112.

And if you don't mind spending more on a smartphone with a little more under the hood, Xiaomi has also confirmed it will be announcing the latest model in its flagship Mi lineup on January 15 in Beijing.