Huawei, the third largest smartphone vendor in China, is also working on a new smartphone that would run on its OS, according to reports. The company is set to enter the US market and has sent out press invites for a June 2 event in New York.

Microsoft Corporation is also reportedly making major investment in Cyanogen Inc to counter Google's Android operating system.

According to reports, Microsoft is putting money into Cyanogen, which is building a version of the Android mobile-operating system outside of Google's auspices.

CyanogenMod operating system for smartphones and tablet computers, is based on the Android mobile platform.

Huawei, the third largest smartphone vendor in China, is also working on a new smartphone that would run on its OS, according to reports. The company is set to enter the US market and has sent out press invites for a June 2 event in New York.

Huawei Technology Co Ltd's smartphone shipments rose by more than 40 percent in 2014, failing to match its own target and the performance of faster growing rivals such as Xiaomi Inc.

Although Huawei's shipments reached 75 million, the figure came in below its previously stated sales target of 80 million units. The growth rate also fell from 67 percent in 2013, in stark contrast to Xiaomi, which overtook Samsung Electronics Inc as the top vendor in China, the world's biggest smartphone market, last quarter. Xiaomi is on track to triple its global 60 million shipments this year.

Nevertheless, Huawei's smartphone revenues rose roughly 30 percent to more than $11.8 billion, according to the year-end memo to employees sent by Richard Yu, the head of Huawei's consumer business.