Acer has just announced its new Liquid Z5 budget smartphone, which will make its debut at this year's International CES next week.

The company will showcase several new devices at CES 2014, including new Iconia tablets, new notebooks, all-in-one (AIO) PCs, and the Liquid Z5 smartphone.

The new Acer Liquid Z5 will launch as an entry-level Android smartphone aiming to attract customers who are on a budget. Acer's Liquid Z series has proved to be quite successful so far, and the new addition is an attempt to lure in more buyers.

"Following the success of the Liquid Z series, Acer today unveiled the Liquid Z5, a compact 5-inch smartphone designed for first-time smartphone adopters or budget-conscious users looking mainly for mobile browsing, photo and video clip taking anytime and mobile entertaining," reads the press release on Friday, Jan. 3.

The new Acer Liquid Z5 will ship with Android 4.2.2 Jelly Bean out of the box and sport a 5-inch display, but Acer makes no mention of resolution. The smartphone measures 145.5 x 73.5 x 8.8 mm and weighs in at 147 grams. Other features include a 5-megapixel rear camera, which Acer boasts is the "best-in class snapper." The camera features a "5 elements f2.4 lens" and allows for "better quality and less graining while in low light environments" thanks to its backside illuminated sensor with 1.4um x 1.4um pixel size.

The smartphone further supports Wi-Fi, integrated GPS, DTS sound technology, 4GB of internal storage, and Acer Float apps "for real time advanced multitasking." Under the hood, we're looking at a dual-core processor (unspecified) clocked at 1.3GHz.

Acer further mentions that its new Liquid Z5 smartphone should launch in mid-January in the UK, France, Germany, the Netherlands, Belgium, Spain, Portugal, and Ukraine, at a suggested retail price of €169 ($230). The smartphone will be available in to color options: Essential White and Gentle Grey. Other markets may follow later this year.

While the Acer Liquid Z5 is by all means an entry-level smartphone and has decent specifications for its category, it's no Moto G. Motorola's new budget smartphone is bound to give some stiff competition to Acer's Liquid Z5, especially considering that it's cheaper and comes with arguably better specifications.