China smartphone sales drop 13% during 618 as memory costs bite

China's smartphone sales fell 13% year over year during the 618 shopping festival, with only Huawei posting growth as rising memory costs forced brands to raise prices and offer smaller discounts.

China's smartphone sales fell 13% year over year during the 618 shopping festival as higher memory costs forced brands to raise prices and scale back discounts, according to Counterpoint Research data.

"Some Chinese smartphone brands priced both their new and existing models higher than comparable devices a year ago," Ivan Lam, Senior Analyst at Counterpoint Research, said. "Discounts during this year's 618 shopping festival were also generally less aggressive, both in terms of price reductions and the range of products included in promotions."

Honor recorded the steepest decline among major brands, with sales dropping 33%. Xiaomi's sales fell 24%, while Apple declined 9%. Huawei was the outlier, posting 19% growth and capturing a 21% market share during the festival period from May 26 to June 21. The company's Enjoy 90 Pro Max was its best-selling model, while the Mate 80 also generated strong demand through promotional campaigns.

The results signal weakening consumer demand in the world's largest smartphone market, where total annual shipments are projected to decline by double digits. Apple offered discounts of as much as 2,000 yuan ($295) on the iPhone 17 Pro lineup through official price cuts, trade-in incentives and platform subsidies, yet still failed to match last year's sales volume when promotions for the iPhone 16 series were more generous.

The sales slump reflects a broader industry challenge: the rapid expansion of artificial intelligence infrastructure has pushed up memory component prices, squeezing manufacturers' ability to offer aggressive discounts during major shopping events. Counterpoint noted that several Chinese smartphone models, both new and existing, carried higher price tags than comparable products sold a year ago.

For Apple, the 9% decline in China during a peak sales period adds to concerns about its competitive position in the region. The company faces intensifying pressure from Huawei, which has regained momentum through its domestic chip supply chain and strong brand loyalty. Xiaomi and Honor, both heavily reliant on the Chinese market, face margin compression as they absorb higher component costs while trying to maintain market share.

Counterpoint expects China's smartphone market to enter a seasonal slowdown after the 618 festival, with total shipments for the year on track for a double-digit decline amid cautious consumer spending.

This article is for informational purposes only and does not constitute investment advice.