Microsoft has tried a lot to retain its position in the smartphone market with its budget phones, but it was not enough, as Huawei surpassed Microsoft to become the World’s third largest smartphone vendor.

In the second quarter of 2015, Huawei has shipped more than 30 million phones worldwide, which is approximately 50% increase from the same period in 2014. Meanwhile, Microsoft has sold 27.8 million phones worldwide in the same quarter.

According to a report by Engadget, Chinese smartphone vendor, Huawei surpassed Microsoft and has now a market share of 7% worldwide, which trails Apple’s 10.9% market share, and Samsung’s 20%.

Huawei surpassed Microsoft and Ken Hyers, Director at Strategy Analytics said:

“Huawei is rising fast in all regions of the world, particularly China, where its 4G models, such as the Mate7, are proving wildly popular.”

According to Strategy Analytics, Huawei is causing a great upset in the market of Asia, particularly in China, where the company’s 4G models such as the Mate7 are gaining increased popularity. At the same time Samsung is facing a tough time in China, the US, Latin America market.

Neil Mawston, Strategy Analytics analyst said in a statement:

“Samsung has stabilized volumes in the high-end, but its lower-tier mobile phones continue to face intense competition from rivals such as Huawei in Asia. Apple grew 35 percent annually and shipped 47.5 million mobile phones for 11 percent worldwide market share in the second quarter. Apple outperformed as consumers in China and elsewhere upgraded to bigger-screen iPhone 6 and 6 Plus models.”

Most of the recent Lumia handsets launched by Microsoft were budget friendly or mid range models, but Microsoft hasn’t been able to attract more customers for its smartphones. As a result, Huawei surpassed Microsoft to become the world’s third largest phone vendor.