Counterpoint Research reported smartphone sales in China rose nearly 18 per cent year-on-year in January, spurred by nationwide subsidies for electronic devices, with the move forecast to add 2 percentage points to 3 percentage points of growth in the opening quarter.

Smartphone sales neared 29 million units, with significant growth in the CNY2,000 ($275.64) to CNY5,000 range, the research outfit stated.

Huawei, Vivo and Xiaomi captured the top three spots and accounted for 53.8 per cent of total sales.

The government introduced a 15 per cent subsidy for mobile phones, tablets and smartwatches priced below CNY6,000 early January, with a maximum subsidy of CNY500 per item and consumers limited to one grant per category.

Counterpoint Research wrote vendors and distributors cut retail prices on selected models to be eligible for the benefit, adding it expects the subsidies will help accelerate a migration from traditional phones to generative AI models.

Canalys data showed shipments in the final quarter of 2024 increased 5 per cent year-on-year to 77.1 million units, albeit this is a different measure to that employed by Counterpoint Research.