[News] China’s 2025 Trade-In Program Fuels Local Smartphone Sales, Leaving Apple at a Disadvantage

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According to a report from Commercial Times, China has officially included smartphones and other digital products in its consumer goods trade-in program in 2025. The subsidy applies to products with a single sales price of no more than RMB 6,000, making Chinese smartphone brands the primary beneficiaries. In contrast, most of Apple’s models sold in China do not qualify for the subsidy.

The report, citing Hong Kong Economic Journal, states that China’s 2025 consumer goods trade-in program will be expanded to include four categories of household appliances and three categories of digital products. For individual consumers purchasing smartphones, tablets, and smartwatches or wristbands, the program stipulates that the single sales price of the product must not exceed RMB 6,000. The subsidy will cover 15% of the product’s sales price, with a limit of one subsidized item per category per consumer and a maximum subsidy of RMB 500 per item.

Most of Apple’s models sold in China are ineligible for the subsidy, as highlighted in the report. According to the prices listed on Apple’s Chinese website, the iPhone 16 Pro starts at RMB 7,999, exceeding the subsidy policy’s limit of RMB 6,000. While the iPhone 16 has a starting price of RMB 5,999, its 256GB and 512GB variants are priced at RMB 6,999 and RMB 8,999, respectively, rendering them ineligible as well, according to the report.

By contrast, compared to Apple’s iPhones, Chinese brands offer a wide range of models that span all price segments, from budget-friendly options to high-end flagship devices. Notably, the report points out that the prices of Chinese high-end models are primarily concentrated in the RMB 5,000–6,000 range, positioning local Chinese brands as the main beneficiaries of the trade-in subsidy program.

TrendForce reports that the top six global smartphone brands collectively commanded nearly 80% of the global market in the third quarter of 2024. Apple ranked second, achieving a production volume of approximately 51 million units and a 17% market share. However, the unavailability of its AI-related features in the Chinese market, coupled with intense brand competition, resulted in a year-over-year decline in sales performance in the region.

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(Photo credit: Huawei)