Lyon: Subsidies for domestic mobile phones may trigger a replacement of mid-to-low-end phones, benefiting companies such as XIAOMI-W(01810).

The research report released by Lyon stated that the mainland China will start providing subsidies for mobile phones starting from January 20th. The subsidy will be 15% for mobile phones, tablets, and smart watches priced below 6,000 RMB, with a maximum limit of 500 RMB. Consumers can receive the national mobile phone subsidy in addition to other discounts. The bank believes that the mainland mobile phone subsidy may spur the replacement of low to mid-range Android phones and some low-end iPhones. Within its coverage, XIAOMI-W (01810), BYD ELECTRONIC (00285), AAC TECH (02018), and Sunny Optical (02382) may benefit from this.