China has started a new smartphone subsidy scheme in its country. Under this scheme, a smartphone or smartwatch can be purchased cheaply in China, but there is a problem in this scheme that its benefit will be available only on purchasing domestic smartphones and smartwatches. Meaning, if you buy Apple or Samsung smartphones, you will not get the benefit of this subsidy. Let us tell you that many provinces of China had already implemented the local trade in program for personal devices.
Apple’s tension increased
This scheme of the Chinese government has increased the tension of Apple, while Huawei, Xiaomi and Oppo brands are enjoying because this scheme of the Chinese government will make it cheaper to buy Chinese brand phones. In such a situation, Apple will suffer direct loss. Apple has also tried to sabotage the Chinese government’s plan. Apple has announced a discount offer on purchasing iPhone. The company is giving a discount of 500 Yuan i.e. $68.50 on the iPhone model.
Which devices will be covered
The National Development and Reform Commission announced on Friday that China’s trade-in subsidy will be expanded. After this, smartphones and other personal electronics will be covered across China. Apple’s smartphone shipments in China have been declining for four consecutive months. According to data from the China Academy of Information and Communications Technology, foreign brand shipments fell 47.4 percent year-on-year in November to 30.4 million units.
Apple’s tension increased due to Huawei’s entry
Let us tell you that Huawei has returned to the premium segment in August 2023. Huawei smartphone sales recorded a growth of 42 percent in the third quarter of 2024, while Apple dropped out of China’s top 5 smartphone brands in the second quarter. Let us tell you that China’s new subsidy program is reminiscent of the program of last year 2007-2013, in which China helped in increasing the market share of domestic smartphone manufacturers.