Huawei overtook Microsoft in the second quarter to become the world's third largest mobile phone vendor, according to Strategy Analytics.
Huawei shipped 30.6 million mobile phones during the quarter, giving it a total market share of 7%, the research firm said.
While Huawei is increasing its sales particularly strongly in China, where its 4G smartphones are wildly popular, the vendor is rising fast in all regions of the world.
Market leader Samsung by contrast saw its sales decline 7% annually to 79 million units, giving it a market share of 20%. This decline can in part be directly attributed to intense competition in the entry-level segment from Huawei and other vendors.
Apple's new iPhones helped it grow 35% year-on-year to ship 47.5 million units for a total share of 11%. Microsoft shipped 27.8 million units and captured a 6% market share.
China's Xiaomi shipped 19.8 million units for a 5% share of the total market, but Strategy Analytics executive director Neil Mawston noted that while the vendor remains a major player in China it is facing intense competition from Huawei, Meizu and others.
“As a result, Xiaomi may struggle to hold on to its top-five global mobile phone ranking in the coming quarters,” he said.
Microsoft recently revealed plans to write off its purchase of Nokia's handset business and dramatically scale back its hardware ambitions.