Costing almost £400 less than a similarly sized iPhone 6 Plus, the OnePlus 2 has been launched as a "flagship killer" costing £239 and promising premium design and hardware.
Launched at a virtual reality event online, the OnePlus 2 is the second smartphone from the Chinese startup that had surprise success with its first smartphone, which was launched 15 month ago.
The company will be hoping the hype surrounding the OnePlus 2, combined with a wider global launch and the budget price will see a repeat of the success it experienced in 2014.
Along with the low price, OnePlus will be hoping to entice users with a range of features including a fingerprint reader, laser-focused camera, dual SIM card support and gesture control. It is also one of the first devices to ship with a USB Type-C connector for charging, which means no more jamming cables in the wrong way around.
The OnePlus 2 will once again be available through an invite only system but the company said in the lead up to the launch that it would have up to 50 times more stock available than it did when the first smartphone launched, after fans expressed frustration at the long wait times to get their hands on the OnePlus One.
In terms of specs, much of its features were trailed in the lead up to the launch, with the screen resolution of 1920 x 1080 pixels one of the only features not known ahead of time – along with the price.
OnePlus targeting US and EU markets
OnePlus will launch the phones in the United States and the EU on 11 August for those with an invite, with the 64GB model costing £289 going on sale first, before the 16GB model will launch "later" costing £239.
Getting invites is likely to be difficult again, with 200,000 people signing up for the reservation list. Everyone who buys a OnePlus 2 will get a number of invites to share, while you can also get some by signing up for the OnePlus forums and following the company on social media.
OnePlus is clearly targeting developed markets such as the US and Europe by launching there first, rather than its home territory of China. In order to succeed in these markets, the company will have to boost its brand recognition and to do this, it will be holding events in nine cities across the continents on Friday 31 July, to give fans a chance to try out the new phone.
Abby Francis from Mobiles.co.uk believes that price will not be the biggest challenge facing the company in the UK.
She said: "Building a quality device at a decent price shouldn't be a problem for OnePlus, with the company enjoying the benefits that come from all functions of the business, including manufacturing and components, being based in China. The challenge will come in marketing it to the average UK smartphone buyer.
"Mention OnePlus to most British consumers and they probably won't know what you're talking about, as is the dominant position that Apple and Samsung enjoy in the UK market. But this isn't a position only occupied by OnePlus, even Xiaomi's brand is a fraction of Apple's and Samsung's, despite being the third biggest smartphone manufacture in the world."