Back in December the first Xiaomi phone was released to the mobile space in China, and it now appears that a second generation Xiaomi phone is on its way to the mobile space that will sport an improved 720p touch screen along with a quad core processor of some description powering the device.

According to a report over on Mic Gadgets, by way of Xiaomifans, the MI-2 Xiaomi phone will also sport a unique back cover that opens up vertically to get to the SIM card and battery, along with the addition of an LED flash for the rear camera, but apparently still lacking a front facing snapper.

However, at this time is still remains unclear whether the Xiaomi phone will come out to play packing Android Jelly Bean, or opt to sport Windows Phone 8, but the smartphone is expected to become available at a low cost of 1999 yuan, which is roughly $313, and is expected to be announced sometime next month.

Apparently the latest and cheapest Xiaomi phones are now targeted towards the low-end market, which have a price tag lower than the iPhone 3GS at US$242 as opposed to US$453 for the iOS smartphone, whilst the Meizu MX 4-core, which we have previously covered, is selling in China for US$480, thus if the new MI-2 Xiaomi phone does surface sporting that US$313 price tag it will be the cheapest quad core smartphone in the market.