Huawei Shines as China's Smartphone Market Falters

During China's month-long 618 shopping festival, smartphone sales experienced a significant year-on-year decrease of 13%. This downturn, observed from May 26 to June 21, was largely attributed to brands increasing prices to counteract escalating memory costs. Consequently, promotional activities were less aggressive than in previous years, dampening consumer demand.

Higher memory prices, driven by extensive AI infrastructure development, have elevated handset production costs. This left smartphone manufacturers with reduced margins for offering substantial discounts during the crucial 618 sales period. While Apple's pricing remained stable, its discounts were also scaled back compared to the prior year.

Huawei Technologies stood out as the only major brand to record sales growth, with a 19% increase, capturing a 21% market share. Its Enjoy 90 Pro Max and Mate 80 models performed strongly. Apple's sales fell by 9%, despite incentives, as previous year's promotions for the iPhone 16 series were more generous.

The 618 festival, once a singular event, has evolved into a month-long e-commerce campaign. However, recent years have seen diminished consumer enthusiasm due to extended discount periods and cautious spending sentiment. Although the festival helped boost June sales from the previous month, a seasonal slowdown is anticipated, with overall shipments likely to decline double-digits this year.