Xiaomi's Chinese phone market booms again

Early in 2025, subsidies on mobile phone sales by China have made a substantial contribution in mobile phone sales, which have led to a sales boom. Smartphone sales have increased by nearly 65% in relation to last year, reaching more than 9.5 million units in a week between January 20 and January 26. The figure reflects a positive uptake of the government policy of subsidies among Chinese citizens.

Interestingly, market leaders Huawei, vivo, and Xiaomi dominated the market, taking a combined market share of 53.8%. The growth in demand is destined to guide strategies for mobile phone manufacturers in following months, further fueling competition in the market.

Smartphone Sales in January 2025 Surge in China

Counterpoint Research sees January 2025 sales of 29 million units of smartphones in China, a growth of 17.6% compared to last year. The growth leaders, Huawei, vivo, and Xiaomi, continue to expand market share. The largest growth in sales was in the 2,000-5,000 yuan pricing band, which shows middle-range smartphones benefited most under this policy of subsidies.

Effect of Government Subsidy The government provides

The National Development and Reform Commission of the Chinese government introduced a subsidy program on 8 January 2025 in a bid to stimulate domestic spending. With this policy:

Mobile, tablet, and smartwatch priced below RMB 6,000 shall be subsidized by 15%, a maximum of RMB 500 for each device.
Home appliances have a separate group of subsidies, which give **15% to 80% discounts, a maximum of RMB 2,000 for a unit.

This helped sustain customer interest even in the week of Spring Festival when business is traditionally slower. The 65% increase in sales of mobile phones in January week last week shows that users availed of subsidies in replacing handsets or upgrading handsets, pushing short-term demand.

OEM Price Reduction in a Bid for Business

To make best use of government policy of subsidies, retailers and manufacturers have been reducing prices proactively on selected models. This action made 2025 Spring Festival one of the best selling periods for digital products, fueling market momentum. Counterpoint Research is anticipating this policy is about to fuel 2-3% growth in sales of mobile phones in China in Q1 2025 compared to last year.

Subsidy Eligibility and Application Procedure

For users who wish to benefit from these discounts, government-approved digital subsidies can be earned online. 3C digital products, tablets, and smartphones all belong to categories eligible for 15% subsidies, which can make tens of millions of users able to enjoy cost-friendly upgrades.

Source: IT Home