A China-based smartphone vendor has stepped up its cooperation with MediaTek and will launch sub-CNY1,000 (US$161) models to take on first-tier vendors such as Xiaomi Technology and Huawei, according to Taiwan-based supply chain makers.

Meizu will roll out two new models, one with a 5.0-inch display and another with a 5.5-inch, in late December, both equipped with MediaTek's MT6752 64-bit 8-core processors, carrying a suggested retail price of CNY799 (US$129) and CNY999, respectively, noted the sources.

Meizu has been focusing mainly on the mid-range to high-end models, using processors from Samsung Electronics and targeting the CNY2,000-3,000 segment, said the sources.

The vendor launched its first MediaTek-based smartphone, the MX4, in September 2014 with a price tag of below CNY2,000.

Meanwhile, Meizu also plans to follow the steps of other vendors to expand its product lines to roll out smartwatches, smart routers, smart TVs and tablet soon, indicated the sources.