China’s annual 618 shopping festival, once a high-water mark for retail activity, saw a notable 13% decline in smartphone sales this year. According to data from Counterpoint Research, manufacturers were forced to hike prices to account for surging memory costs linked to the rapid expansion of AI infrastructure. Because of these rising production expenses, brands had little leeway to provide the deep, aggressive discounts that typically drive consumer interest, leaving shoppers less motivated to upgrade their devices compared to previous years.

Major players like Honor and Xiaomi experienced significant double-digit drops in volume, while Apple saw a 9% decline despite offering substantial incentives and trade-in deals. In a surprising contrast, Huawei stood as the only major brand to defy the downward trend, recording a 19% increase in sales and capturing the largest market share. As the industry heads into a seasonal slump, analysts expect the overall market to face a double-digit decline for the year, reflecting broader concerns about cooling consumer sentiment and the waning influence of China’s massive e-commerce sales events.