The move is part of Amazon's strategy to dig deeper into the Chinese mobile phone market.

BBC: A Chinese girl uses a mobile phone

As for an initial public offering, the Xiaomi founder and renowned Chinese angel investor said it was too early for the mobile phone company to test the market.

FORBES: Yuri Milner And Chinese Billionaire Lei Jun Discuss The Future of Mobile For China's Answer To Apple

Apple needs a low cost collation to address that market and provide an entry point for the majority of Chinese mobile phone buyers.

FORBES: What China's Booming Mobile Phone Demand Means For Apple's Stock