Key facts
- China's smartphone sales fell 13% during the 618 festival.
- Higher memory costs contributed to the smartphone sales decline.
- Brands offered fewer discounts during the 618 festival.
- Huawei was the only major brand to see sales growth.
- Honor and Xiaomi experienced significant declines in sales.
- Chinese semiconductor equipment stocks are currently rallying.
- A boom in the memory market is driving semiconductor stock rallies.
- Government support for domestic technology is boosting chip equipment stocks.
- Upcoming earnings reports will assess the sustainability of the chip stock rally.
Smartphone sales in China experienced a significant 13% year-on-year decline during the recent 618 shopping festival. This downturn is largely attributed to brands grappling with higher memory costs and consequently offering fewer discounts to consumers. Amidst this market contraction, Huawei emerged as the only major smartphone brand to record growth. In contrast, Honor and Xiaomi faced substantial decreases in their sales figures during the festival period.