China's government-run electronics subsidy program, which took effect on January 20, 2025, has already led to lower prices for smartphones, including iPhone models.
The PRC government provides a 15% discount on the price of the product after the retailer's discount on devices worth up to 6,000 yuan (about $820). The maximum subsidy amount is 500 yuan (about $68) per product. The subsidy is one-time.
In anticipation of the launch of the program, smartphone sellers adjusted their prices in China. So, the price of the iPhone 16 Plus dropped from 6,999 yuan ($956) to 5,999 yuan ($820), making it eligible for the subsidy program. The iPhone 16 will sell for around 4,999 yuan ($683) on sites like JD.com, and will be around 4,499 yuan ($615) after the subsidy.
The Xiaomi company is also actively using the capabilities of the new program. After the subsidy, flagship models Redmi Turbo 4 and K80 are now available from 1,699 yuan ($232). The subsidy program is expected to stimulate consumer demand in China, increase sales of digital electronics and create new opportunities for the entire industry, including component suppliers.
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