Goldman Sachs published a research report stating that the national subsidy policy for smartphones, tablets, smart bracelets and watches has been launched since January 20, predicting that smartphone products priced between 3,300 and 6,000 yuan will benefit the most, and Xiaomi Group is expected to be one of the main beneficiaries. However, Goldman Sachs also pointed out that it has noticed that Apple and Huawei have joined the competition in the 4,000 to 6,000 yuan price range, and considering the subsidy plan and the price cuts of smartphone OEMs, price competition may intensify. Goldman Sachs currently believes that Xiaomi's smartphone products are more cyclical and have a higher sustainability in contributing to long-term business growth and profitability. It is expected to benefit from the potential increase in smartphone sales, giving a target price of HK$38 and a rating of "buy".