China's Xiaomi Inc has become the world's third-largest smartphone vendor within three years after first hitting the market, according data released Strategy Analytics and IDC. The research firm said Xiaomi accounted for 6 percent of all 320 million smartphones shipped during July-September. Samsung made up 25 percent, down from 35 percent a year earlier due to rising competition from several directions.

Apple's share also fell slightly to 12 percent.

Despite rumors of a slowing market, smartphone shipments continue to see record-setting volumes.

According to another research from International Data Corporation (IDC), vendors shipped a total of 327.6 million units during the third quarter of 2014 (3Q14), resulting in 25.2% growth when compared to the 261.7 million units shipped in 3Q13 and 8.7% sequential growth above the 301.3 million units shipped in 2Q14.

IDC found that Samsung remained the clear leader in the worldwide smartphone market, but was the only company among the top five to see its shipment volume decline year over year. Although Samsung has long relied on its high-end devices, its mid-range and low-end models drove volume for the quarter and subsequently drove down ASPs.

Apple took the wraps off its iPhone 6 and iPhone 6 Plus, and in the process posted its largest third-quarter volume ever. Although the company posted strong results of 10 million units sold during its initial launch weekend, what should not be overlooked is the sustained demand for its older iPhone 5S and 5C models, which comprised the bulk of its volume for the quarter.

IDC confirmed Strategy Analytics's results, reporting that Xiaomi jumped into the top 5 list for the first time at the number 3 position thanks to its focus on China and adjacent markets, which resulted in triple-digit year-over-year growth. Key to its success was the launch of its Mi4 smartphone in August, which was positioned as a high-end alternative to the status quo. What remains to be seen is how quickly the company can move beyond its home territories to drive volumes higher.

Lenovo tied for fourth with LG, as its results improved on steady gains at home and abroad with the share of non-China shipments rising steadily to hit 20% in 3Q14, up from 9% a year ago.

Top Five Smartphone Vendors, Shipments, Market Share and Year-Over-Year Growth, Q3 2014 Preliminary Data (Units in Millions)