HTC has announced the Desire 200 budget smartphone, Digital Spy said.

The device offers a 1GHz Snapdragon S1 processor with 512MB of DDR1 and 4GB of on-board storage, expandable through microSD support.

Other features include built-in Beats Audio technology, a 5-megapixel camera, and an unspecified version of the Android operating system with the HTC Sense user interface plastered over it.

Measuring in at just 4.24 inches tall and 2.39 inches across, the handset is little bigger than a credit card.

HTC launched the Desire X smartphone last year, a device that offered an alternative to the HTC One X, with high-end specs and a budget price tag.

The Taiwanese firm is yet to announce pricing and a release date for the Desire 200.