If it is not for profit, can NIO owners afford the NIO Phone which starts at 6,000 yuan?

Today, NIO officially announced its first smartphone product, NIO Phone. This high-end flagship model features a 2K curved screen, Snapdragon 8 leading processor, 50-megapixel triple camera and other top hardware configurations. It also runs the SkyUI system and promises "0 system ads, 0 commercial pre-installation". In addition, NIO Phone can also achieve seamless connection with NIO cars and provide a variety of intelligent car control functions.

NIO is a leading smart electric vehicle brand in China, known for its high-end positioning, innovative technology and high-quality services.

In 2022, NIO delivered a total of 122,486 new cars, a year-on-year increase of 34%, occupying a certain share in the new energy vehicle market. In February 2023, NIO delivered 12,157 new cars, a year-on-year increase of 98.3%, and a total of 310,219 new cars were delivered. NIO also announced the construction target of battery swap stations in 2023, increasing from the original 400 to 1,000.

So, why did NIO enter the mobile phone market?

According to Li Bin, founder, chairman and CEO of NIO, at the financial report meeting, "We make mobile phones not for the purpose of profit, but NIO users need a mobile phone that connects seamlessly with NIO cars."

He also said, "If raw material prices continue to decline as we expect, we will not change our goal of achieving break-even for the NIO brand in Q4 2023." From these words, we can see that NIO is confident in its core business, and making mobile phones is only to enhance user experience and brand influence.

But can NIO succeed in the mobile phone market? Judging from the current situation, it is not easy.

First of all, the mobile phone market is already very saturated and highly competitive. The leading manufacturers at home and abroad have occupied most of the market share and user minds. To break through in such an environment, sufficient innovation and differentiation are required. From the product parameters of NIO Phone, there are not many breakthrough highlights. Except for the linkage function with NIO cars, other aspects are just following the trend or following the mainstream.

Secondly, the pricing of NIO Phone is not competitive. The performance version (12GB+512GB) is priced at 6,499 yuan, the flagship version (12GB+1TB) is priced at 6,899 yuan, and the EPedition version (16GB+1TB) is priced at 7,499 yuan. Such prices have exceeded many domestic flagship phones and are even close to the prices of Huawei and Apple phones. However, Huawei and Apple's brand power, ecological power, and user loyalty in the high-end market are difficult to shake.

Finally, the target users of NIO Phone are also relatively limited. Although the user base of NIO is constantly expanding, it is still difficult to support a high-end mobile phone brand. Moreover, not all NIO car users will choose to buy NIO Phone, because they may have become accustomed to their own mobile phone brand and system, or are not satisfied with the cost performance of NIO Phone.

Regarding the NIO mobile phone, some netizens said, "Even if it doesn't sell well, it will be a good gift as a gift for car purchases or redeemed for NIO membership points in the future", "Compared with the hundreds of billions of dollars burned in making cars, making mobile phones will not lose much money."

In summary, NIO's intention to enter the mobile phone market is good, but the challenges it faces are also great. To gain a foothold in this red ocean market, more innovation and breakthroughs are needed, rather than just relying on the influence and user base of the car brand.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.