The latest research from Strategy Analytics has revealed that Huawei has overtaken Microsoft to become the world's third largest mobile phone vendor. The news isn't great for Microsoft's phone division, which has been conceding market share since the company acquired it from Nokia in 2013.

According to Strategy Analytics, global mobile phone shipments grew by just two percent year-on-year, rising from 428 million units shipped in Q2 2014 to 435 million units in Q2 2015. This is the industry's "weakest performance for two years" due to slowing demand for new devices in China, Europe and the United States.

Huawei was the best performing company in this period, rising to a record high market share for the company of just over seven percent. This allowed the company to capture third spot in global mobile phone market share, which includes feature phones and smartphones, with shipments for the quarter reaching 30.6 million units.

In overall mobile phone market share, Samsung still claims the number one spot with 20 percent, followed by Apple on 11 percent. Microsoft now sits fourth on the charts with 27.8 million shipments and six percent market share overall, having fallen significantly from the 50.3 million units it shipped in the same quarter last year.

As for the smartphone market by itself, Microsoft doesn't come close to cracking the top five companies, which are currently Samsung (21.2% market share), Apple (14%), Huawei (9.0%), Xiaomi (5.8%) and Lenovo-Motorola (4.8%). Some smartphone vendors that have a large presence in North America, such as LG and HTC, also can't crack the top five.

While Samsung still commands the top spot in both mobile phone and smartphone market share globally, the company's phone shipments have dropped year on year in Q2 2015. With the company recording a disappointing quarter that has led to their flagship phone, the Galaxy S6, receiving a discount, this isn't too surprising to discover.