Lenovo India on Thursday launched the 5.5-inch K3 Note, which promises to intensify phablet competition in the country, offering features including an octa-core processor and Dolby Atmos surround sound technology, at 9,999 rupees (about $160).

For phablet lovers shopping at a budget, the K3 Note also offers a slightly superior alternative to the single SIM, quad-core Redmi Note 4G from Xiaomi Corp. at the same price, or the Meizu M1 Note, which offers similar specifications but at a higher price.

Lenovo’s dual SIM phone supports 4G networks in India and has a MicroSD card slot as well. Other specs include 2GB/16GB storage capacity, 13MP/5MP cameras and a reasonably capacious 3000mAh battery, for a phone that has a full HD IPS display with 1920x1080 pixel resolution.

Phablets, as 5-inch plus smartphones are often called for being a combination of phones and tablets, are increasingly popular in India, the world’s third biggest smartphone market.

Of all smartphones sold in India last year, nearly 35 percent were phablets, according to Counterpoint Technology Market Research. In the first quarter of 2015, that number had risen to 38 percent, even though the overall smartphone market slowed due to the seasonal nature of the segment.

While at the top end, Apple Inc.’s iPhone and iPhone 6 Plus are popular in India for the Apple experience on larger screens, the K3 Note directly competes with the Redmi Note 4G, which comes with only one SIM slot and lower-resolution display in comparison with the K3.

It remains to be seen if Lenovo will retain the price on the K3 Note or, like with the A6000, raise it in the months to come. All the more reason for those intent on a well put together phablet at less than 10,000 rupees. The K3 Note goes on sale on Flipkart's portal on July 8 and registrations started Thursday.