Lenovo is working on the LePhone S899t, an Android 4.0-powered phone for China Mobile that is eyeing the affordable category of Android powered smartphones, but with specs that will put many not-so-affordable mid to high-end devices to shame.

Packing support for China Mobile’s TD-SCDMA 3G standard, the LePhone S899t will come with a dual-core 1 GHz ST-Ericsson NovaThor U8500 ARM Cortex-A9 processor with Mali-400 graphics, a 4.5-inch qHD (540×960) IPS touchscreen display, and with Android 4.0.3 running out of the box. All of it will be housed in a 9.9 mm thin body.

But the best part about the S899t is that it will apparently be priced at 1,299 yuan, which equates to just about $206 (€160). With such great specs at such a cheap price, it may well put many low-end Android phones (which are one of the reasons for Android selling so well) out of business.

There is no news on the release date and specs other than the ones listed above, but we’ll let you know as more details get leaked. I’m still finding it hard to believe that such a device could be priced so low, but kudos to Lenovo if they actually manage to pull it off.