A third smartphone running Alibaba’s Aliyun cloud-based mobile operating system is launching this week at a significantly lower price point than its predecessors.

The new K-Touch W806, made by Beijing Tianyu Telecommunications Equipment Co., retains many of the features of previous Aliyun phones, including a high-end Nvidia Tegra 2 processor and 5-megapixel camera, but adds a larger 4.3-in. screen. The W806 also sports 1 gig of RAM instead ofthe 512 MB on the W700 and W800 Aliyun phones, and is larger (but a hair thinner) than the older devices.

The biggest difference is price. The W806 costs RMB 1,499 ($237), 44 percent less than the iPhone-like RMB 2,680 sticker attached to the W700 when it launched last summer. Alibaba and Beijing Tianyu have not shared much in the way of sales figures for Aliyun phones, but it’s a good bet that adoption has been slowed by the relatively high pricetag in a Chinese market that is saturated with cheaper Android phones, including ones from Baidu and Dell.

The W806 operates on Aliyun OS 2012, the most refined version of China’s only cloud-based mobile operating system, which Alibaba claims offers faster access to web app content. The OS has recently added some mobile shopping features. For example, the cloud system’s app store, Aliyun Mart, now includes a couple of shops offering direct purchasevia Aliyun phones.

Here’s how the latest Aliyun phone stacks up spec-wise:

W806 W700

Screen Size 4.3″ 3.8″

Camera 5 MP 5 MP

CPU Tegra 2 Tegra 2

RAM 1G512M

ROM 4G 8G

Screen resolution 800√ó480 pixels 800√ó480 pixels

Free cloud storage60G100G

Dimensions 129.3√ó65√ó12(mm) 118√ó60√ó13(mm)