China 618 Smartphone Sales Drop 13% as Higher Prices Hurt Demand, Huawei Gains Market Share

China’s smartphone sales fell 13% year-over-year during the 2026 618 shopping festival as rising handset prices and weaker discounts discouraged buyers, according to Counterpoint Research. The annual month-long shopping event, held from May 26 to June 21, is widely viewed as a key indicator of consumer spending and e-commerce activity in China.

Counterpoint reported that nearly all major Chinese smartphone brands experienced double-digit sales declines, with Huawei standing out as the only leading manufacturer to post annual growth. Honor recorded the steepest decline at 33%, while Xiaomi’s sales dropped 24%. Apple also saw a 9% decline compared with the same period last year.

Industry analysts attributed the weaker performance to higher smartphone prices driven by increased memory costs. The rapid expansion of artificial intelligence infrastructure has pushed up memory component prices, reducing manufacturers’ ability to offer deep discounts during the 618 sales event.

Counterpoint senior analyst Ivan Lam said several Chinese smartphone models, both new and older devices, were priced higher than comparable products sold a year ago. He added that discounts were less aggressive this year, both in terms of price reductions and the number of eligible products. Apple largely maintained its pricing but also reduced the scale of its promotional offers.

Huawei captured a 21% market share during the festival, supported by a 19% increase in sales. The company’s Enjoy 90 Pro Max emerged as its best-selling smartphone, while the Mate 80 also generated strong demand thanks to promotional campaigns.

Apple climbed to the second-largest market position after introducing discounts ahead of June 18. Consumers were offered savings of up to 2,000 yuan (about $295) on the iPhone 17 Pro lineup through official price cuts, trade-in incentives, and platform subsidies. However, Apple’s overall sales still lagged last year, when promotions for the iPhone 16 series were more generous.

Counterpoint noted that while the 618 festival helped smartphone sales recover from the previous month, China’s smartphone market is expected to enter a seasonal slowdown, with total annual shipments projected to decline by double digits amid soft consumer demand and cautious spending.