A report from Counterpoint Research on Feb. 27, shows that a government subsidy program has significantly boosted smartphone sales in China. Huawei topped the sales chart in January, followed by Vivo and Xiaomi.

Together, these three brands accounted for 54% of the nearly 29 million smartphones sold.

The market saw a 17% year-on-year increase, with the strongest growth in devices priced between 2,000 and 5,000 yuan (US$275–US$688).

The surge followed a government scheme launched on Jan. 20, offering a 15% subsidy on smartphones, tablets, and smartwatches priced under 6,000 yuan (US$824.36).

During the first week (Jan 20–26), sales exceeded 9.5 million units, marking a 65% increase from the same period last year.

The report predicts the subsidies could add 2 to 3 percentage points to first-quarter sales growth.

Premium models like Apple’s iPhone 16 series are mostly ineligible due to their higher prices.

Recent Huawei developments