Chinese smartphone maker Xiaomi mobile has announced its first drone, pricing it significantly lower than a comparable model by the market leader DJI.

Xiaomi announced its latest product—a drone priced at 2999 yuan ($456) for a model with a 4k camera, and 2499 yuan ($380) for a version with a lower resolution 1080p camera. Xiaomi says that a pre-orders will begin for the 1080p version tomorrow, while a beta version for the 4k version will be given out to select users.

However, the difference in price is extreme. The Phantom 4 costs $1,399 while the Mi Drone (4K model) costs just $457. And the Mi will be available with a 1080p camera for an incredible $380. Both come with a remote control. Going by what Xiaomi has said, aside from obstacle detection, there’s very little difference between what DJI and Xiaomi are offering.

Can Xiaomi maintain these low prices in the U.S. market while still making a profit? Certainly the costs of shipping have to increase and any tariffs would have to be passed onto the consumer. Would there be too much frustration if a Mi Drone sells in China for $460 and in the U.S. for $600? That’s still a fraction of what it costs to buy a DJI Phantom 4.

Although the Xiaomi Mi Drone will be sold under Xiaomi's brand, it was actually designed by Guangzhou Feimi Electronic Technology - a start-up that Xiaomi helped fund in 2014.