Nio Launches $900 Smartphone to Boost EV Competition

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【Summary】Chinese electric vehicle manufacturer Nio has entered the smartphone market, unveiling the Nio Phone with unique features including the ability to control multiple cars with one device and unlock a car that is switched off. The phone, priced at $890 for the base model, aims to enhance connectivity and services for customers. However, 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 9:21 AM PT

Nio Launches $900 Smartphone to Boost EV Competition

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

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 features an action button that allows users to activate over 30 functions related to vehicle control. The device boasts a Samsung 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 with 16 GB RAM and 1 TB storage, priced at 7,499 yuan ($1,027). The smartphone aims to attract customers with its enhanced connectivity and services.

While Nio makes its foray into the smartphone market, there have been discussions surrounding Elon Musk's acquisition of Twitter and its potential impact on Apple's App Store. Reports indicated that Apple might remove the then-Twitter app from its store, leading Musk to threaten the creation of an alternative smartphone if both Apple and Google took such action. However, there have been no updates on a "Tesla smartphone" despite the online speculation.

Although the launch of the Nio phone presents an opportunity for the company, it could also strain Nio's finances. The company is already operating at a loss and facing shrinking gross margins due to intense competition in China's EV market. As a result, Nio recently announced a $1 billion senior convertible note offering, which led to a significant drop in its stock price.

Despite these challenges, Nio's stock closed up 3.16% at $8.82 on Wednesday, according to Benzinga Pro data. Currently, the stock is trading flat with a slight negative bias in mid-session on Thursday in Hong Kong.

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