By
Godfrey Benjamin
April 26th, 2024
The new Nio smartphone, though outwardly resembling a conventional mobile device, harbors unique features that make it a game-changer for Nio’s customers.
In a surprising and bold move, Nio Inc (NYSE: NIO), the distinguished Chinese electric car brand, has ventured into the world of smartphones. Nio’s CEO, William Li, recently disclosed in an exclusive interview with CNBC that the company anticipates at least half of its users to purchase this innovative Android smartphone.
Factors Fueling Nio’s High Expectations
“I believe this portion of users are very likely to use this new form [of device] when they are changing their phones,” Li stated, pointing to the smartphone’s overall performance and its strong integration with Nio’s electric vehicles as the driving factors behind this assumption.
Another key aspect driving the expectation of high adoption rates among Nio users is the existing user base’s composition. Among Nio users who contribute significantly to the company’s profits, there is an even split between iPhone users and those utilizing flagship Android phones, including those from Huawei and other leading brands.
The popularity of the Nio smartphone app, with a daily user count of approximately 600,000 active users, further demonstrates the demand for Nio’s ecosystem and services. Surprisingly, this number exceeds the count of Nio car users, highlighting the broader appeal of Nio’s offerings.
The Nio smartphone, priced competitively at approximately $900 to $1,000, is designed to cater to the needs and preferences of Nio’s dedicated user base. Li emphasized that this device offers remarkable value, coming in at around $150 less expensive than a comparable Huawei smartphone.
Features of the Nio Smartphone
The new Nio smartphone, though outwardly resembling a conventional mobile device, harbors unique features that make it a game-changer for Nio’s customers.
One standout feature of the Nio smartphone is a dedicated button that functions as a key for Nio’s electric cars. This innovation is not only practical but also represents a step forward in terms of user convenience and integration.
Beyond the innovative car key feature, the Nio smartphone provides improved connectivity between the phone and the vehicle. CEO Li stressed that this connectivity allows for seamless transitions between phone and car, even during online meetings. The highly anticipated Nio smartphone is set to hit the market soon. Orders are scheduled to begin immediately, and delivery is slated to commence on September 28th.
CEO Li emphasized that the Nio smartphone is not limited to Nio car owners. It is available to all consumers in China, however, the smartphone is not slated for release in Europe, at least not in the near future. Nio is present in five European countries, including Germany, and the company needs time to work on creating local automotive services, according to Li.
Currently, the Electric Vehicle (EV) industry is undergoing a remarkable transformation, where companies are expanding their horizons beyond just manufacturing cars.
This shift towards diversification is exemplified by the recent announcements from notable EV manufacturers like Polestar Automotive Holding (NASDAQ: PSNYW), as well as tech giants like Apple Inc (NASDAQ: AAPL), Xiaomi Corp (HKG: 1810), and Huawei, who are all venturing into new territories to cater to the evolving needs of their customers.