Until not long ago, it was common to change your mobile phone every so often, usually every year or even less; Smartphone technology was relatively new, so manufacturers took giant steps with each new generation. That is changing, and today it is increasingly common for our mobile phone to last several years before having to change it, thanks to new policies such as extended Android support.
It must also be taken into account that each new generation of smartphones improves less compared to the previous one; we are facing ‘evolutions’ and not ‘revolutions’and many people prefer to wait a little longer before changing their mobile. This change in customs has its advantages, but also its disadvantages, especially in the economic sphere on a global scale.
Therefore, in China they have now made a decision that may seem surprising, but that makes a lot of sense considering the context: the subsidy to buy a new mobile. Specifically, the government has decided to expand the exchange program that it already had in place to encourage the purchase of more efficient appliances and less polluting cars; according to statements by members of the government, collected by BloombergStarting this year, smartphones, tablets and smart watches are also included.
This program allows Chinese citizens trade in your old device and receive a discount in the purchase of a more modern spare part, a process subsidized by the government.
To finance this aid to more types of products in addition to those that were already part of the program, the government will increase the sale of special state bonds. In addition to promoting the sale of consumer products, the program is expected to encourage companies to upgrade their computer equipment.
The Chinese government’s objective with these new subsidies is evident: to encourage consumption, especially of national products from brands such as Huawei and Xiaomiand through platforms such as Alibaba (AliExpress in Spain) and JD.com; In this way, it hopes to address the effects that the new United States tariffs on Chinese exports are having on the economy.
The technology industry is precisely one of the most affected by the US government’s measures, with some companies like Huawei being completely commercially blocked; This new movement aims to help both Huawei and the rest of the Chinese manufacturers to promote sales of their new devices. It’s not that things are going badly for them; Huawei has managed to surpass Apple in the global smart watch market, and Xiaomi has come to occupy the second global position in mobile phone sales, and is the best-selling brand in markets such as Spain.
