China-based smartphone vendors Huawei and Gionee Communication Equipment will follow the steps of fellow company Xiaomi Technology to market smartphones online with aggressive pricing, a move which is expected to heat up competition in China's smartphone market in 2014, according to industry sources.

Huawei plans to launch two new models under the "Honor" brand in December, highlighting that the price/performance ratios of the two new phones will be higher than comparable models from Xiaomi, said the sources.

The Honor-brand will be operated independently, and Huawei is expected to continue to operate dual brands in the future, added the sources.

Gionee has established a new team and plans to release new smartphones under the "IUNI" brand through online community networks. The IUNI will also be run independently with Gionee providing financing and after-sales services.