People visit the stand of Qihoo 360 at an expo in Beijing, April 30, 2016. [Photo/VCG]

Qihoo 360 Technology Co Ltd, China's largest internet security company, unveiled a new handset aimed at mobile game lovers, as it sets the ground to tap opportunities offered by internet of things (IoT).

The N5, unveiled on Wednesday in Beijing, comes with a 6GB ram and a Snapdragon processor. Its vision and sound effects have been optimized for Land of Glory, a mobile game developed by NetEase Inc.

The new handset allows users to play games with several accounts and provides them with a fast and pleasant playing environment, the company said.

Priced from 1,399 yuan ($203) in the Chinese mainland market, the N5 is much cheaper than similar handsets of other brands, said Li Kaixin, president of Qihoo 360's mobile phone unit.

He said it was difficult to maintain such a price, because the costs of mobile phone components are surging, caused by the depreciation of renminbi.

"Instead of raising phone prices immediately, we will try our best to improve supply chain management," added Li.

Unlike other Chinese players who are marching into the high-end smartphone market, Qihoo 360 focuses on phones that are priced around 1,000 yuan.

"Qihoo 360 does not want to make money from smartphones. It aims to lure as many users as possible with affordable devices, so that it can build a smartphone-centered ecosystem for the internet of things," said Xiang Ligang, a smartphone expert and CEO of telecom industry website cctime.com.

"It believes handsets will play a central role in controlling everything in future," he added.

As the country's largest internet security provider, Qihoo 360 said it connects with 96 percent of Chinese netizens. Last year, it has sold over 5 million handsets.

Cheng Yu contributed to the story.