Nio Launches $900 Smartphone to Accelerate EV Competition

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【Summary】Chinese electric vehicle manufacturer Nio has launched a smartphone, the Nio Phone, with features such as controlling multiple cars and unlocking a car even when switched off. Priced at $890 for the base model, the smartphone aims to enhance connectivity and services for Nio customers. The launch could strain Nio's finances, as the company is still operating at a loss and facing fierce competition in China's EV market.

FutureCar Staff Sep 21, 2023 6:20 AM PT

Nio Launches $900 Smartphone to Accelerate EV Competition

Nio, Inc. is making a bold move in China's competitive electric vehicle market by entering the smartphone arena. The company's CEO, William Li, recently introduced the Nio Phone in Shanghai, showcasing its unique features. According to a Reuters report, the smartphone can control multiple cars with a single device and even unlock a car when it's switched off.

The Nio Phone comes with impressive specifications, as reported by CnEVPost. It is equipped with a Qualcomm Snapdragon 8 Gen 2 system-on-chip, 16 GB RAM, and 1 TB storage. The smartphone runs on the Sky user interface, an Android-based mobile operating system. It also has an action button that allows users to activate over 30 functions related to vehicle control. The device features Samsung's 6.81-inch curved screen with 2K resolution and supports a 1-120 Hz refresh rate. Additionally, it has a 5,200 mAh battery that supports 66 W wired fast charging, 50 W wireless fast charging, and 10 W reverse charging.

The pricing for the Nio Phone starts at 6,499 yuan ($890) for the base model. There is also a higher-tier version available, which offers 16 GB RAM and 1 TB storage for 7,499 yuan ($1,027).

Nio's entry into the smartphone market aims to attract customers with enhanced connectivity and services. The company is looking to differentiate itself from competitors and capitalize on the growing demand for electric vehicles.

It is worth noting that Elon Musk's acquisition of Twitter, now renamed X, has led to speculation about Apple removing the then-Twitter app from its App Store. In response, Musk threatened to create an alternative smartphone if Apple and Google removed Twitter from their app stores. However, there have been no updates on a "Tesla smartphone" despite the buzz surrounding it.

The launch of the Nio phone could have financial implications for the company. Nio is currently operating at a loss and facing shrinking gross margins due to intense competition in China's EV market. This week, the company announced a $1 billion senior convertible note offering, which caused its stock price to drop more than 17% on Tuesday. As of Wednesday, Nio's stock closed up 3.16% at $8.82.

Despite the challenges, Nio remains optimistic about its future prospects. The company is focused on rebounding in the third quarter with increased deliveries and sales. The launch of the Nio Phone is part of its strategy to expand its offerings and provide a comprehensive ecosystem for its customers.

Overall, Nio's entry into the smartphone market demonstrates its commitment to innovation and staying ahead in the competitive EV industry. The Nio Phone's unique features and connectivity options could attract customers and contribute to the company's growth.

Photo courtesy: Nio