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Counterpoint: China’s 618 smartphone sales fall 13% year-on-year
During China's 618 shopping festival, smartphone sales fell by 13% year-on-year, with major brands increasing prices to counter higher memory costs. Promotions were less aggressive, resulting in significant sales declines for brands like Honor and Xiaomi, which experienced drops of 33% and 24%, respectively.
Key points
- Counterpoint Research reported a 13% drop in smartphone sales in China year-on-year during the 618 shopping festival.
- Major brands, except Huawei, experienced double-digit sales declines.
- Price increases were implemented to offset higher memory costs, affecting consumer demand.
- Promotional activities were less aggressive compared to the previous year, leading to further declines in sales.
- Honor's sales dropped by 33%; Xiaomi's sales decreased by 24% due to reduced discounts and promotional ranges.
Why it matters
- In recent years, rising memory costs have impacted various technology sectors, resembling trends seen in semiconductor shortages.
- Increased smartphone pricing aligns with global inflation trends affecting consumer electronics.
- The decline in aggressive promotions reflects a broader trend as companies adjust to changing market dynamics post-pandemic.
The drop in smartphone sales during the 618 festival indicates increasing challenges for major brands in balancing prices and consumer demand amidst rising costs.