Chinese multinational networking and telecom equipment manufacturer, Huawei has replaced Microsoft for the first time to become the world's third largest smartphone vendor. According to the Q2 2015 research released by Strategy Analytics on Thursday, the other Chinese tech titan's growth has slumped so much that the company may soon be out of the top five rankings globally.

Citing the Strategey Analytics' report, IB Times states Xiaomi continues to be big in China and is currently positioned fifth among the largest smartphone vendors globally. The company sole 19.8 million phones in Q2 2015. However, Strategy Analytics says that owing to fierce competition from Huawei as well as other phone manufacturers, Xiaomi's local as well as global growth is plunging. Thi is despite the fact that The Wall Street Journal valued at $46 billion in December 2014 and its plans to expand globally.

In fact, Strategy Analytics stated that Huawei is causing a great disruption in the Asian market, especially in China where the company's 4G models such as the Mate7 are becoming increasingly popular. Huawei shipped 30.6 million mobile phones in Q2 2015, with Microsoft shipping 27.8 million units and lagging behind the Chinese tech giant.

According to the Q2 2015 results released by Strategic Analytics, Samsung secured the top sales position, shipping 89.0 million mobile phones, while Apple, which shipped 37.5 million iPhones, was ranked second.

Strategy Analytics director Woody Oh said, "Smartphones accounted for 8 in 10 of total mobile phone shipments during the quarter. The 2 percent growth rate of the overall mobile phone market is the industry's weakest performance for two years, due to slowing demand for handsets in China, Europe and the US."