Domestic brands still dominate cellphone shipments in China as Chinese cellphone makers accelerated innovation, an industrial report showed.

Shipments of cellphones made by Chinese companies reached 498 million in 2016, accounting for 88.9 percent of the country's total shipments, according to the report from the China Academy of Information and Communication Technology, a government IT think tank.

Total shipments of cellphones reached 560 million in 2016, up 8 percent year on year, the report showed.

Most of the cellphones are smart phones installed with the Android system and 4G ready, according to the report.

Chinese cellphone maker giant Huawei expects its smart phone shipments to grow 29 percent year on year to reach 139 million in 2016, compared with an estimated global average shipment growth of 0.6 percent.

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