An advertisement board for Chinese tech giant Huawei reflects the Apple logo across from an Apple store in Shanghai on September 10, 2024, the day when Huawei launched its new tri-foldable smartphone Mate XT just hours after Apple unveiled its latest iPhone 16. Photo: VCG

 
The Ministry of Commerce (MOFCOM) said on Thursday that the subsidies for mobile phones and other digital products have exceeded 50 million units in the past four months since an action plan was launched in January. 

As of Thursday, 48.848 million consumers had purchased 51.483 million mobile phones and other digital products, bringing sales of 143.26 billion yuan ($19.89 billion).

In the first four months of this year, the total retail sales of communication equipment in units above the designated size increased by 25.4 percent year-on-year, ranking first among the growth rates of 16 major categories of consumer goods. Consumers aged 20 to 40 are the main consumer group, accounting for 62.8 percent of new mobile phone purchases, MOFCOM said. 

According to third-party data, driven by the subsidy policies for the purchase of new mobile phones and other digital products, the consumption structure has shifted to the middle and high-end. 

The sales volume of mobile phones priced between 2,000 and 4,000 yuan and between 4,000 and 6,000 yuan increased by 13 percent and 43 percent year-on-year, respectively. 

From the supply side data, taking Dongguan in Guangdong Province, where electronic information manufacturing is the largest pillar industry, as an example, driven by the subsidy policy, from January to April 2025, the retail sales of communication equipment in the city's units above the designated size increased by 75.3 percent, of which April saw an increase of 97.5 percent.
 
China unveiled an action plan on January 15 detailing subsidy measures for purchasing new smartphones and other digital products, which covers products of both domestic and foreign brands.

Under the plan, individual consumers purchasing smartphones, tablets, smartwatches or wristbands priced below 6,000 yuan per item will receive a subsidy covering 15 percent of the product's sales price, according to the plan.

Starting from January 20, each consumer can receive a maximum subsidy of 500 yuan per item, with a limit of one subsidized item per category, according to the plan.

MOFCOM and other departments also announced a subsidy plan for home appliances this year, increasing the number of eligible categories to 12 in 2025 from eight in 2024. 

Global Times