CORRECTED-UPDATE 1-Huawei spin-off brand Honor enters top three in China shipment ranking -research

(Corrects paragraph 3 comparison to prior quarter, not on the year)

SHANGHAI, Oct 28 (Reuters) - Honor, the Chinese smartphone brand spun out of Huawei Technologies Co Ltd, saw shipments soar in the latest quarter to become the country's third-ranked brand, said research firm Counterpoint Research, which tracks hardware.

The brand's swift rise comes after Huawei saw sales tank following sanctions imposed by the United States that prevented it from sourcing chips.

Honor sold 96% more phones in the quarter ending in late September than in the preceding quarter, said Counterpoint, to grab a share of 15% of the market in China.

It now ranks after Vivo and Oppo, with shares of 23% and 20% of the market, respectively.

Honor originated as a sub-brand of Huawei that specialized in low-end and mid-range devices. This year, Huawei said it had sold the division to a consortium of buyers including the government of the southern boomtown of Shenzhen.

The company has ramped up advertising and marketing in China since. In August it released its Magic 3 high-end line of phones that sells for as much as 7,999 yuan ($1,250).

Overall sales of smartphones for the quarter fell 9% on the ear, as demand stayed weak on ever-lengthening upgrade cycles.

Xiaomi Corp grew shipments 15% to attain a market share of 14%, putting it in fourth place. Apple Inc ranked slightly behind, with a 13% share of the market. (Reporting by Josh Horwitz; Editing by David Goodman and Clarence Fernandez)