The drop in sales occurred between May 26 and June 21, with all leading Chinese brands except Huawei experiencing double-digit decreases due to fewer promotions compared to last year, which affected demand. Sales for Honor took a hit of 33%, while Xiaomi’s declined by 24%.
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The increase in memory prices, driven by a swift expansion of AI infrastructure, has raised handset prices this year, leaving brands with less flexibility to offer significant discounts during the 618 festival—an important indicator for the thriving e-commerce landscape in China.
“Some older and newer models from Chinese smartphone manufacturers were priced higher than similar models from the previous year, while discounts during this year’s 618 festival were generally less aggressive, both in terms of the size of the price cuts and the variety of products offered,” stated Ivan Lam, a senior analyst at Counterpoint Research.
“Apple maintained stable pricing, but its discounts were also reduced.”
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Huawei Technologies dominated the market with a 21% share and was the only major brand to achieve year-on-year growth during the 618 period, seeing a 19% increase in sales.
The Enjoy 90 Pro Max was its top-selling model, while the Mate 80 also performed strongly, aided by promotions.
Apple’s sales dropped by 9% compared to a year earlier, although the U.S. technology giant managed to secure the No. 2 position after rolling out incentives about a month prior to June 18.
The discounts offered savings of up to 2,000 yuan ($295) on the iPhone 17 Pro series through a combination of official price reductions, platform subsidies, and trade-in offers.
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Nonetheless, Apple’s sales remained below last year’s figures, partly because promotions for the iPhone 16 series were more substantial during the same timeframe in the previous year.
The 618 festival, which started as a single-day event celebrating JD.com’s establishment on June 18, 1998, has evolved into a month-long sales initiative, with major e-commerce platforms competing for consumer expenditure.
In recent times, however, China’s largest shopping festivals have struggled to regain their previous excitement, as prolonged discount periods and sluggish consumer confidence have reduced interest in non-essential purchases, even at lower prices.
Counterpoint noted that the 618 festival aided smartphone sales in June compared to the preceding month. However, it also indicated a likely seasonal slowdown in the market afterward, projecting a double-digit decline in shipments for the year.
