* Huawei was only major brand with sales growth over
month-long event, Counterpoint says
* Apple ( AAPL ) ranked second after discounts on iPhone 17 Pro
series Brands limited incentives amid soaring global memory chip
prices
* Counterpoint projects China smartphone shipments to post
double-digit decline this year
By Che Pan and Eduardo Baptista
BEIJING, July 7 (Reuters) - Smartphone sales in China fell
13% year-on-year during the month-long 618 shopping festival, as
brands raised prices to offset higher memory costs, according to
data from Counterpoint Research.
Sales declined from May 26 to June 21, with all major
Chinese brands except Huawei posting double-digit drops as fewer
promotions compared to last year weighed on demand. Honor sales
dropped 33%, while Xiaomi's ( XIACF ) fell 24%.
Higher memory prices amid a rapid build-out of AI
infrastructure have pushed up handset costs this year, leaving
brands with less room to offer steep discounts during the 618
festival, seen as a barometer for the country's booming
e-commerce sector.
"Some older and newer models from Chinese smartphone brands
were priced higher than comparable models a year earlier, while
discounts during this year's 618 festival were generally less
aggressive, both in terms of the size of price cuts and the
range of products covered," said Ivan Lam, senior analyst at
Counterpoint Research.
"Apple's ( AAPL ) prices were broadly unchanged, but its discounts
were also smaller."
Huawei Technologies led the market with a 21%
share, and was the only major brand to record year-on-year
growth during the 618 period, with sales rising 19%.
Its Enjoy 90 Pro Max was its best-selling model. The Mate 80
also performed well, supported by promotions.
Apple's ( AAPL ) sales fell 9% from a year earlier, although
the U.S. tech giant climbed to the No. 2 spot after rolling out
incentives about a month ahead of June 18.
The discounts offered savings of up to 2,000 yuan ($295) on
the iPhone 17 Pro series through a mix of official price cuts,
platform subsidies and trade-in deals.
Still, Apple's ( AAPL ) sales remained lower than a year earlier,
partly because promotions for the iPhone 16 series were more
aggressive during the same period last year.
The 618 festival, which began as a one-day event marking
JD.com's ( JD ) founding on June 18, 1998, has since grown into a
month-long sales campaign, with major e-commerce platforms
competing for consumer spending.
In recent years, however, China's biggest shopping festivals
have struggled to generate their former buzz, as extended
discount periods and weak consumer sentiment have curbed
appetite for non-essential spending, even at reduced prices.
Counterpoint said the 618 festival helped smartphone sales
recover in June from the previous month. But it added that the
market was likely to enter a seasonal slowdown afterward and
post a double-digit decline in shipments for the year.
($1 = 6.7886 Chinese yuan)