China Smartphone Sales Down 8.6% in First 30 Weeks of Year

China's smartphone market experienced an 8.6% year-on-year sales decline during the first 30 weeks of the year, driven by weakening demand and rising costs, according to Counterpoint Research's weekly retail sales tracking.

Huawei maintained its leading position in the market during this period, holding a weekly sales share above 20% since the second quarter. The company's performance has been supported by strong demand for the Changxiang 90 Pro Max model. Huawei has indicated that smartphone prices may need to increase to offset higher component costs.

Apple's sales entered a seasonal slowdown in July, dropping to fifth place in weekly sales rankings in China. This period of stable demand is expected to continue until the upcoming launch of new iPhone models.

Xiaomi climbed to second place in sales share by week 30, attributed to the launch of the REDMI Note 17 series. However, sales of these models have been weaker than their predecessors due to price increases and downgraded specifications. Xiaomi has also implemented price hikes on several other models, which may further pressure sales in the latter half of the year.

Other brands such as OPPO and vivo have seen their performance affected by rising costs and reduced promotional activities. The market faces increasing pressure from rising storage and SoC costs, pushing manufacturers to raise prices further. Competition is expected to intensify with increased investment in AI, potentially widening the gap for lagging manufacturers.