"Apple and Samsung have been dominating the high-end of the market and that's the part of the market that is getting saturated," Francisco Jeronimo, a research director for IDC, told CNBC.
"The new vendors like Huawei and ZTE, and other vendors, particularly from China, are challenging the main vendors because they are improving their experience on their devices at a lower price."
(Read More: What Happened to Unstoppable Samsung?)
Shares of Samsung closed 3.8 percent lower on Friday, after the South Korean electronics giant releasing pre-earnings guidance that missed analysts' expectations. Samsung forecast operating profit rose 47 percent in the second quarter from a year earlier to a record 9.5 trillion won ($8.3 billion). However, this missed forecasts for a rise to 10.16 trillion won.