Nio Launches $900 Smartphone to Boost EV Competition

Home > Industry Analysis > Content

【Summary】Chinese electric vehicle manufacturer Nio has entered the smartphone market with the launch of the Nio Phone. The device boasts features such as controlling multiple cars with a single device 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 the company's finances as it continues to operate at a loss in the fiercely competitive Chinese EV market.

FutureCar Staff Sep 21, 2023 11:17 PM PT

Nio Launches $900 Smartphone to Boost EV Competition

Nio, Inc. has made a bold move to stand out 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 phone can control multiple cars with a single device and even unlock a car when it is 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 phone 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 display features Samsung's 6.81-inch curved screen with 2K resolution and supports a 1-120 Hz refresh rate. Additionally, the phone is powered by 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). With its enhanced connectivity and services, Nio aims to attract customers with its smartphone offering.

It is interesting to note that in the wake of Elon Musk's acquisition of Twitter, now renamed X, reports suggested that Apple might remove the then-Twitter app from its App Store. Apple also slowed down advertisements on Twitter as it observed the direction the social-media platform would take in a post-Musk era. 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 online speculation.

The launch of the Nio phone could have financial implications for the company. Nio is currently facing financial challenges, operating at a loss and experiencing 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. On Wednesday, Nio's stock closed up 3.16% at $8.82, and it was trading flat with a slight negative bias on Thursday in Hong Kong.

For more information on the future of mobility, you can follow this link to Benzinga's coverage. Photo courtesy: Nio