China’s 618 Festival Sees 13% Drop in Smartphone Sales
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Quick answer
China’s smartphone sales during the 618 festival fell 13% year-on-year due to higher device prices and less aggressive discounts. Most brands, except Huawei, reported double-digit declines in demand.
Research firm Counterpoint Research released data on smartphone sales in China during the traditional 618 shopping festival, held from May 26 to June 21. Compared to the same period last year, sales volumes declined by 13%. Analysts attribute this drop to rising device prices, driven by increased component costs, particularly memory.
All major Chinese brands, except Huawei, reported double-digit sales declines. Honor led the decline with a 33% drop, followed by Xiaomi at 24%. Experts noted that this year’s promotions were less aggressive in terms of discount sizes and the range of participating devices.
Counterpoint Research Senior Analyst Ivan Lam explained that manufacturers raised prices for both new and existing models as a response to rising production costs. This reduced consumer interest in purchases, leading to the sales decline.
Common questions
- Why did smartphone sales in China drop during the 618 festival?
- Sales declined due to higher device prices and less attractive promotions. Manufacturers raised prices to offset rising memory costs, reducing consumer demand.
- Which brands saw the largest sales declines?
- Honor (33%) and Xiaomi (24%) experienced the steepest drops. Huawei was the only major brand without a double-digit decline.
- How did smartphone prices change in China?
- Prices for both new and existing models increased compared to last year. Discounts during the 618 festival were less significant, impacting purchasing activity.
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