Lyon issued a research report stating that the National Development and Reform Commission has announced the expansion of the old-for-new subsidy policies to include more digital products, covering Smart Phones, tablets, and smartwatches/bracelets. This aligns with expectations, and it is believed that the Android supply chain, which has relatively high fixed costs, should be more sensitive to the introduction of this policy. The preferred choices are Xiaomi, BYD Electronics, AAC Technologies, and Sunny Optical, all rated as 'outperforming the market.' Lyon forecasts that the sales volume of Smart Phones in China will be 0.278 billion units in 2024, and it is currently estimated that the national subsidy policy could boost the sales volume of the Chinese Smart Phone market by about 15% this year, reaching 0.32 billion units, which corresponds to a 3.5% increase in global Smart Phone sales in 2025. Based on this sales forecast, and assuming the average retail price of a Smart Phone in China is 2000 yuan, with subsidies accounting for 15%, it is expected that the central and local governments will need to provide a total subsidy of 96 billion yuan this year.