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CHINA SMARTPHONE SALES DROP 13% AS BRANDS RAISE PRICES

AI DESK1 MIN READ
TUE, JUL 7, 2026

■ AI-SUMMARIZED FROM 1 SOURCE ▸ TIMELINE

Chinese smartphone sales fell 13% year-on-year during the 618 shopping festival as manufacturers raised prices to offset rising memory chip costs. Honor and Xiaomi saw steeper declines of 33% and 24% respectively.

The June shopping event, China's second-largest annual sales period after Singles' Day, revealed weakness in the smartphone market as brands struggled with component cost pressures. Broadly, the 13% decline reflects a challenging market environment where price hikes failed to drive consumer demand. Honor was hit hardest with a 33% sales drop, while Xiaomi faced a 24% decline during the festival period. Manufacturers implemented price increases to protect margins as memory chip costs remained elevated. The strategy backfired as consumers pulled back on purchases, suggesting price sensitivity remains high in China's competitive smartphone market. The weak 618 performance adds to concerns about smartphone demand in the world's largest market by unit volume. Brands face a delicate balancing act: raising prices to offset costs risks alienating price-conscious buyers, while absorbing costs pressures margins.

■ SOURCES

Techmeme

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

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