Chinese smartphone manufacturer Xiaomi (XIACF  ) has overtaken Apple (AAPL  ) as the second-largest phone producer by market share, according to research from a leading global market analyst firm.

Xiaomi overtook Apple as of the second quarter, according to Canalys, putting the firm behind current industry leader Samsung (SSNLF  ). According to observers, Xiaomi's success is largely attributed to the company's mass-market appeal, as opposed to the higher-end markets that Apple exclusively tailors to.

Xiaomi is looking to penetrate that market, though in doing so, it not only faces resistance from titans such as Apple and Samsung but from domestic competitors similarly looking to gain shares of the premium market.

"It will be a tough battle, with Oppo and Vivo sharing the same objective, and both willing to spend big on above-the-line marketing to build their brands in a way that Xiaomi is not," Canalys research manager Ben Stanton wrote of Xiaomi's two prominent competitors. "All vendors are fighting hard to secure component supply amid global shortages, but Xiaomi already has its sights set on the next prize: displacing Samsung to become the world's largest vendor."

Whether or not Xiaomi will retain its #2 position remains uncertain; as others have pointed out, Q2 is typically weak for Apple due to the firm's preferred product development and release schedule. However, what is certain is that the low-cost manufacturer is rapidly becoming a considerable force in the global smartphone market.

The tit-for-tat Sino-American Trade War saw previous Chinese frontrunner Huawei lose ground to competitors. Xiaomi benefitted from relative insulation against the trade war, avoiding a blacklisting akin to Huawei. Even as negotiations continue to ease measures enacted during the trade war, Huawei is unlikely to recover from the immense damage inflicted, leaving Xiaomi plenty of room for growth.

OTC shares of Xiaomi were up on the news of the firm's accomplishment, gaining 7.6% in a pre-market rush on Friday.