Xiaomi has ousted Samsung as the top mobile manufacturer in China.

According to market research firm Canalys, Xiaomi distributed about 15 million phones against Samsung's 13.2 million during the last quarter.

Canalys said Samsung experienced a 15 percent drop in sales during the same quarter. It's the first time Samsung came second in China since 2011.

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"Undoubtedly, this was helped by an anticipated, temporarily understrength Samsung performance during the quarter," said Jingwen Wang, Canalys research analyst.

Wang said Xiaomi has implemented its strategy to raise volume shipments. Xiaomi also delivered emerging products with aggressive price points and employed effective market targeting.

Canalys said in order for Xiaomi to retain its sales growh, it needs to produce LTE products in China. This move is will address the growing demand for 4G services among Chinese consumers.

China owns 37 percent of the global phone market and has more mobile phone users than any other country in the world.

Xiaomi's success in China will lead to the expansion of the business to countries like Thailand, Mexico, Russia, Indonesia and Turkey by 2015.

Analyst Jessica Kwee said Xiaomi needs to build its international brand while localizing its service that offers the MIUI operating system for different markets.

Xiaomi needs to customize its marketing strategy and online sales channels properly.

"That said, Xiaomi does have the potential to be a disruptive force beyond China and international vendors should take note," Kwee added.

Tagsmobile manufacturer, Xiaomi Mi 3, Xiaomi Mi 4, Mi 4, Mi 3