China's domestic smartphone makers continue to battle foreign rivals as they post bigger market shares in the second quarter of this year, industry statistics show.

Chinese brand Xiaomi sold more smartphones than any other producer in the country in the second quarter, garnering a market share of 18 percent, according to latest figures from market researcher IHS Technology.

Huawei and Vivo, both home-grown brands, took 16 percent and 10 percent market share respectively, ranking second and fourth place.

Apple took third with a market share of 12 percent, while Samsung fell from fourth to fifth place with 9 percent.

Analysts attributed the domestic ascent to their improved designs and innovative technology.

However, as the overall smartphone market slows, Chinese producers will have to explore emerging overseas markets, according to a report by technology research firm Gartner.

Xiaomi has had a successful run in Asian markets such as India and is looking to expand its foothold in Brazil.

Huawei is also speeding investment abroad, with its smartphone sales in several overseas regions, including Europe, surging over 40 percent in the first half.

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