Huawei passes Apple to become world's No. 2 smartphone maker

"The continued growth of Huawei is impressive, to say the least, as is its ability to move into markets where, until recently, the brand was largely unknown," IDC analyst Ryan Reith said in a statement.

Yes, but: Apple could retake the No. 2 spot later this year, when the new iPhone models come out. "It is worth noting that Apple moved into the top position each of the last two holiday quarters following its product refresh, so it's likely we'll see continued movement among the top ranked companies in 2018 and beyond," Reith said.

The bottom line: Apple still accounts for the bulk of the industry's profits and dominates the most lucrative segment of the market. Samsung remains the market leader, but Huawei has emerged as a serious global rival while names like HTC and Sony have faded.