Computer makers are of the opinion that the government decision to end the current price cap in the rural electronic subsidy program will inevitably mean an important increase in sales. Wang Zhong, general manager, Desk Computer Marketing, Lenovo Group, said though demand for high-end computers is high amongst rural consumers, sales have been limited by the current price cap.
The Chinese government launched the program earlier this year by offering a 13% subsidy to electronics buyers in rural areas to stimulate the economy. But the subsidy was offered only for purchase of computers priced below $500.
Last month, Zhao Bo, a deputy director of China’s Ministry of Industry and Information Technology, said at an industry seminar in Wuhan that the government is working on new measures to enhance its consumer electronics subsidy program by lifting the current product price cap in the program and encouraging sales of high-end electronic products in rural areas.
China Daily quoted Weekee Yeo, director of the HP’s consumer PC business in China, as saying the company is planning to introduce more high-end products in rural areas as he believes the lifting of price cap in the subsidy program will further stimulate the rural market.