Today, long after the 618 shopping festival has ended, many domestic flagship phones have embarked on significant price cuts. The fact that they are only now reducing prices after the 618 festival has become a peculiar phenomenon in the domestic phone market, compelled by their dismal performance during the promotional event. However, initiating price cuts now may indeed be a bit too late.

618 is one of the two crucial sales seasons in China each year, with mobile phone sales during this period potentially accounting for half of the second quarter's total. This underscores the importance of the 618 promotion for mobile phone companies looking to boost their sales. Apple has emerged as the clear winner of this year's 618 shopping festival.

Apple took the lead in slashing prices in May, offering discounts of up to RMB 2,000 on the iPhone 15, which further increased to RMB 2,350 during the 618 festival. This aggressive pricing strategy propelled Apple's three iPhone 15 models to the top three spots during the promotion. Thanks to the substantial sales during the 618 festival, Apple has risen to third place in terms of activations in the domestic mobile phone market in the second quarter, up two spots from fifth place in the first quarter.

The performance of domestic mobile phones during the 618 festival was rather peculiar. Few new flagship or mid-to-low-end domestic phones made it into the top 10 best-selling list. Surprisingly, many of the domestic phones that did make the list were equipped with Qualcomm's previous-generation high-end Snapdragon 8G2 chip, revealing consumers' unique preference for domestic brands.

This outcome stems from the fact that domestic flagship phones are pricey yet unable to match the performance of the iPhone 15, leading most high-end consumers to opt for Apple products. On the other hand, domestic mid-to-low-end phones have faced criticism for using outdated chips, such as MediaTek's rebranded Dimensity 6020, which is based on a three-year-old chip, or Qualcomm's Snapdragon 660 upgrade from 2018. Consumers have thus shunned these phones in favor of Snapdragon 8G2 devices, which offer a better balance of price and performance.

Realizing their missed opportunity during the 618 festival, domestic phone makers have finally begun slashing prices on their new flagship models in an attempt to capitalize on the summer shopping season. However, while the summer shopping season is indeed a busy period, various factors may impact sales, making it unlikely to match the success of the 618 festival.

The summer shopping season will also be influenced by Apple's upcoming iPhone 16 launch in September. In anticipation of this, many consumers may choose to wait, either for the latest iPhone 16 or for further price reductions on older iPhone models.

The release of the new iPhone 16 will exert significant pressure on domestic flagship phones. Apple's A-series processors already hold a significant lead, and the A18 processor in the iPhone 16 is expected to further enhance performance, placing even greater pressure on domestic flagships. Moreover, the iPhone 16's arrival will likely trigger price cuts on the iPhone 15, further pressuring domestic phone makers to reduce their prices.

Since the previous year, Qualcomm has been advancing the release of its new high-end chips. Last year, it unveiled the Snapdragon 8G3 in October, and this year, it is likely to follow suit with the Snapdragon 8G4, also in October. The Snapdragon 8G4 will adopt a more advanced 3-nanometer process, which will further boost its performance. Both the iPhone 16 and Qualcomm's Snapdragon 8G4 will put pressure on existing domestic flagship phones.

It can be said that domestic flagship phones' belated price cuts have come too late. Amidst various pressures, consumers may not be swayed by current domestic flagship offerings. Instead, they may wait for the impact of the iPhone 16 and Qualcomm Snapdragon 8G4, or for deeper discounts on domestic flagships, or even for the latest phone models to arrive.