China smartphone sales slump 13% during 618 festival as memory costs curb discounts

Smartphone sales in China fell 13% year‑on‑year during the month‑long 618 shopping festival, covering May 26 to June 21. All major Chinese brands posted double‑digit declines except Huawei, which grew 19% and held a 21% market share, making it the only brand with year‑on‑year growth.

Honor’s sales dropped 33% and Xiaomi’s fell 24% as higher memory‑chip prices—driven by rapid AI‑infrastructure build‑out—pushed handset costs up and limited the scope of discounts. Apple’s sales slipped 9% year‑on‑year, but the U.S. company reclaimed the No. 2 spot after offering up to 2,000 yuan (≈$295) off the iPhone 17 Pro through price cuts, platform subsidies and trade‑in deals.

The 618 festival, now a month‑long barometer of Chinese e‑commerce demand, has lost some of its previous buzz, with weaker consumer sentiment and extended discount periods curbing non‑essential spending. Counterpoint Research expects a seasonal slowdown after the festival and a double‑digit decline in smartphone shipments for the year.