Over 20 Million Apply for National Subsidies to Buy Phones and Digital Products
Over 20 million people have applied for national subsidies to purchase mobile phones and other digital products, with consumers reacting enthusiastically to the opportunity. According to CCTV news, from January 20th to February 8th, 20.092 million consumers applied for subsidies for 25.414 million mobile phones and other digital products. This data indicates that the national subsidy policy has had a significant incentive effect on consumers, driving up sales and revenue in the mobile phone market. Notably, sales of mobile phones priced between 4000 and 6000 yuan have seen a year-on-year growth of 108%, demonstrating the strong stimulus effect of the policy on the mid-to-high-end mobile phone market.
11 February 2025
During the Spring Festival period, sales of smartphones priced below 2000 yuan, between 2000-4000 yuan, and between 4000-6000 yuan increased by 10%, 52%, and 108% respectively compared to the same period last year. Over 6000 merchants across the country participated in the subsidies program for new digital products, including smartphones, through China UnionPay, resulting in 6.2684 million subsidy transactions with a total sales amount of approximately 20.58 billion yuan. The "国补" policy, which provides a 15% subsidy on the purchase of new digital products, including smartphones, with a maximum subsidy of 500 yuan per item, has created a buzz in the market, with many consumers taking advantage of the subsidies to purchase new smartphones.
The subsidies program has also led to a price adjustment by some manufacturers, with high-end models being discounted to fall within the subsidy threshold. For example, Apple and Huawei, two of the leading smartphone manufacturers, reduced the prices of some of their models, including the iPhone 16 and Huawei Mate 60 Pro+, to make them eligible for the subsidy. The discounted prices, combined with the 500 yuan subsidy, have made these mid-to-high-end models more affordable for consumers, leading to a surge in sales. Consumers have expressed satisfaction with the experience, with one consumer commenting, "I'm thrilled to have used the national subsidy for the first time, and it was also my first time using cloud flash payment for shopping - it was quick and easy to complete."
The response to the national subsidy policy has been overwhelmingly positive, with many consumers appreciating the convenience and savings offered. Despite some reports of stock shortages and aggressive marketing tactics, the overall experience has been positive, with consumers taking advantage of the subsidies to purchase big-ticket items like electronics and home appliances. As the government's efforts to stimulate consumption and promote economic development continue, some pundits are predicting that the next wave of national subsidies may have a significant impact on the housing market, potentially leading to a surge in funding flowing into the first-tier markets and causing fluctuations in housing prices.
The data on consumer purchases will be closely watched in the coming days, providing insights into the policy's impact on consumer behavior and the broader economy. While some individuals are looking to capitalize on the subsidized purchases, such as buying mobile phones and then reselling them, others are more interested in the personal benefits of the subsidies. As the policy's effects continue to unfold, it is clear that the national subsidy policy has had a profound impact on consumer behavior and the economy, and its effects will be felt for some time to come.
