Apple Joins China’s Subsidy Scheme to Boost Sales

iphone sales growth

Apple has officially joined China’s national digital product subsidy program through its own sales channels for the first time. Customers in Beijing and Shanghai can now buy select iPhones, iPads, Apple Watches, and Macs at discounted prices when purchasing directly from Apple’s online and retail stores. The move marks a strategic shift as the U.S. tech giant faces mounting pressure from fast-growing Chinese rivals.

The program offers subsidies of up to 2,000 yuan (about $278), depending on the product category and price. For devices priced under 6,000 yuan, including some iPhone 16 and 15 models, the discount reaches 15%, capped at 500 yuan. Higher-end devices like certain Mac models qualify for the full 2,000 yuan reduction. To qualify, customers in Shanghai must shop at one of the city’s eight Apple retail locations. In Beijing, orders placed through Apple’s online store with a Beijing shipping address are eligible.

First-Time Participation via Official Channels

While Apple’s products have been available under China’s subsidy scheme before, they were sold only through third-party platforms such as JD.com and Alibaba’s Taobao. This is the first time Apple itself is directly participating in the program through its own online and physical stores.

The move comes as Apple struggles to maintain its position in the Chinese smartphone market. In the first quarter of 2025, Apple’s iPhone shipments in China dropped 9% year-on-year, according to data from market research firm IDC. This made Apple the only top-five smartphone vendor in the country to report a decline during the period. Meanwhile, Xiaomi’s shipments rose nearly 40%, and Huawei gained 10%.

Competition, Pricing, and Consumer Shifts

iphone 16e (se) sales

IDC analyst Will Wong attributed Apple’s decline to its premium pricing, which limits eligibility for many of its models under the government’s price cap. In contrast, companies like Xiaomi have benefited directly from the subsidy program, offering more value-aligned pricing that appeals to a broader customer base.

The subsidy program was introduced earlier this year to encourage consumer spending, particularly on electronics. Devices like smartphones, tablets, and wearables under 6,000 yuan are eligible for a 15% discount, with a maximum of 500 yuan per product.

According to South China Morning Post, Apple’s official entry into the scheme coincides with broader economic headwinds in China and the rise of local manufacturers that are rapidly integrating AI features into their devices. Apple’s own AI service, Apple Intelligence, remains under regulatory review in the Chinese market.

With sales slowing and competition intensifying, Apple’s inclusion in the subsidy scheme appears aimed at regaining momentum by offering more competitive pricing, at least for select models.

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