For the first time, four Chinese brands have been ranked among the top five most profitable smartphone vendors around the globe due to Samsung's fiasco surrounding the Galaxy Note7, according to an industry consulting company.  Karn Chauhan, research analyst for Counterpoint Technology Market Research, said the top four domestic brands generated a combined $1.1 billion in operating profits, capturing a combined 11 percent profit share in the third quarter of this year.

"The game of profits has always been between Apple and Samsung because of its strong presence premium segment and vertical integrated business model," said Chauhan. Statistics show that the global mobile handset hardware segment generated $10.2 billion in operating profits during the third quarter. "Over the last few quarters, there has been a strong competitive shift towards the Chinese brands which has generated healthy scale focusing on high volume mid- to high-tier segment by offering an attractive affordable premium portfolio," Chauhan added.

Lei Jun, founder and CEO of China's mobile company Xiaomi, shows its new model Xiaomi Mi Max at its launching ceremony in Beijing, China May 10, 2016.[Photo/Agencies]

No. 5 Xiaomi, operating profit share: 0.4 percent