(Yicai) June 24 -- Apple has joined China’s national subsidy program, hoping to make up ground lost to local competitors who have used the consumer grants to boost their sales.

The subsidies will be limited to Beijing and Shanghai, with as much as CNY2,000 (USD279) off Apple computers and CNY500 off eligible iPhone, iPad, and Apple Watch models priced up to CNY6,000 (USD836).

China this year expanded the scope of its trade-in subsidy policy for consumer goods to include digital products such as mobile phones and tablets. Subsidies on Apple products had only been available through third-party sales channels such as e-commerce retailers JD.Com and Alibaba’s Tmall. 

By joining the program directly, consumers can now enjoy government subsidies alongside official Apple after-sales support, enhancing the overall buying experience, according to Cinno Research analyst Zhou Hua.

Apple offers various after-sales benefits, such as a 14-day return policy and Genius Bar assistance at its brick-and-mortar stores.

The subsidies have proved very popular, and Chinese tech giants such as Xiaomi and Huawei Technologies have used them to boost sales, particularly in the key mid-range segment. There has even been a shortage of subsidy funds in some regions, which may explain Apple’s decision to limit the coverage to Beijing and Shanghai.

A buying spree over the mid-year 618 online shopping festival resulted in funds drying up in areas including the provinces of Jiangsu and Hubei as well as the city of Chongqing. The subsidies have either been suspended or are subject to daily limits in these areas, but they are still operating normally in Beijing and Shanghai.

Apple’s revenue in China has declined for seven consecutive quarters. Sales fell 2 percent to USD16 billion in the three months ended March 29, while the firm’s global income rose 5 percent to USD95.4 billion, according to its latest financial report.

Editors: Dou Shicong, Tom Litting