Since the Mobile & Digital Subsidy Program Launched, 91 Million Phones Sold — Over 72% Are Mid-to-High-End Models!

Fast Technology reported on January 10 that the Ministry of Commerce’s latest data shows strong momentum since the consumer trade-in program for selected goods was introduced in 2024. Total sales of eligible products have reached RMB 3.92 trillion, benefiting an estimated 494 million consumer transactions.

Automotive trade-ins have surpassed 18.3 million units, with new energy vehicles accounting for nearly 60% of the total. This shift has helped drive a sharp expansion in China’s domestic new energy passenger vehicle market, with sales reportedly doubling over the period.

Home appliance trade-ins have also surged, exceeding 192 million units. Notably, energy-efficient models dominate demand, with products rated at top-tier energy efficiency accounting for more than 90% of purchases.

On the consumer electronics side, purchases of new phones and other digital devices have topped 91 million units. Mid-to-high-end models have taken the lead, representing 72.5% of total sales—highlighting a clear preference for higher-spec devices under the subsidy structure.

The phone and digital-device subsidy category was added later, on January 20, 2025. Under the policy, individual consumers purchasing a single device priced at no more than RMB 6,000—across three eligible categories (smartphones, tablets, and smartwatches or bands)—can receive a purchase subsidy.

Each consumer is eligible for one subsidized unit per category. The subsidy is set at 15% of the final sales price after all manufacturer, distribution, and mobile carrier discounts are applied, capped at RMB 500 per item.

As a result, RMB 3,333 emerged as a practical “value-for-money anchor.” Devices priced below that level cannot fully utilize the maximum subsidy, encouraging consumers to shop within the RMB 3,333–6,000 range to maximize savings—naturally lifting demand toward mid-to-high-end models.

For example, a flagship device priced at RMB 5,999 could be reduced to an out-of-pocket cost of RMB 5,499 after applying the subsidy. Meanwhile, a RMB 3,333 model would drop to RMB 2,833—creating a clear, highly visible value proposition at key price points.

This year’s new round of subsidies has already begun. Building on last year’s phone and digital-device coverage, the program has expanded again—adding smart glasses as an eligible category and lowering the barrier for consumers to try next-generation wearables.

Beyond boosting near-term retail demand, the policy is also expected to encourage companies to step up R&D investment. This could accelerate progress across critical components and technologies—including optics, displays, chips, audio, batteries, and AI—as well as broader adaptation for both consumer and commercial use cases.

In the bigger picture, the initiative supports the development of a stronger domestic industry cluster and positions local players to compete more effectively in the strategic race for the next wave of intelligent terminals.