Domestic company Xiaomi has become the top smartphone vendor in China, the world's largest smartphone market.

Xiaomi took a 14-percent market share in this year's second quarter, beating South Korean electronics giant Samsung, according to independent analyst company Canalys.

Samsung had a 12-percent market share. It had been China's leading smartphone vendor since 2012's first quarter, when its market share was 22 percent.

"This is a phenomenal achievement for Xiaomi," said Canalys research analyst Jingwen Wang, "[Xiaomi] has delivered compelling products at aggressive price points, focused chiefly on its locally relevant MIUI software features and services, backed by effectively targeted marketing."

The rest in the top 5 are all Chinese companies - Lenovo, Yulong and Huawei.

Although 97 percent of Xiaomi's second-quarter shipments were into the Chinese mainland, the company is looking to expand into other markets, including Indonesia, Mexico, Russia, Thailand and Turkey.