China Smartphone Sales Fall 13% During 618 Festival Amid Rising Costs

Smartphone sales in China experienced a 13% year-on-year decline during the month-long 618 shopping festival, according to data from Counterpoint Research. Brands struggled to offer significant discounts as higher memory costs, driven by the rapid build-out of AI infrastructure, pushed up handset prices.

From May 26 to June 21, most major Chinese brands, including Honor (down 33%) and Xiaomi (down 24%), posted double-digit drops. This contrasts with previous years where aggressive promotions fueled demand. Huawei Technologies was the sole major brand to buck the trend, increasing sales by 19% and capturing a 21% market share, with its Enjoy 90 Pro Max and Mate 80 models performing well.

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Some older and newer models from Chinese smartphone brands were priced higher than comparable models a year earlier, while discounts during this year's 618 festival were generally less aggressive, both in terms of the size of price cuts and the range of products covered.

Apple's sales fell 9% despite climbing to the second spot after offering incentives. While discounts of up to 2,000 yuan were available on the iPhone 17 Pro series, they were less aggressive than the previous year's promotions for the iPhone 16 series. Apple's prices remained largely unchanged.

The 618 festival, historically a key barometer for China's e-commerce sector, has seen diminishing buzz in recent years. Extended discount periods and weak consumer sentiment have curbed spending on non-essential items. While the festival helped smartphone sales recover in June, Counterpoint Research anticipates a seasonal slowdown and a likely double-digit decline in overall shipments for the year.

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Apple's prices were broadly unchanged, but its discounts were also smaller.