China smartphone sales drop despite shopping festival

Smartphone sales in China fell 13% ‌year-on-year during the month-long 618 shopping festival, reports Reuters. This comes as brands raised prices to offset higher memory costs.

Sales declined from May 26 to June 21, according to data from Counterpoint Research, 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 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.