Nio Inc. (NYSE:NIO) has unveiled its latest offering: an Android smartphone. The electric vehicle (EV) manufacturer anticipates that a significant portion of its current customer base will be interested in purchasing this smartphone, which falls within the $900 to $1,000 price range. Notably, this places it in a more budget-friendly category compared to Huawei smartphones.
According to CNBC, over half of Nio’s users currently own iPhones, while the remaining users utilize Android smartphones from various brands, including Huawei. Nio is banking on the idea that a substantial portion of these Android users will opt for Nio’s smartphone when it’s time for an upgrade.
Nio’s smartphone launch marks a significant milestone, as it is the first Chinese EV manufacturer to venture into the smartphone market. In China, EV companies have been emphasizing in-car entertainment and seamless mobile phone connectivity as selling points.
The company has slated the start of smartphone deliveries for September 28th.
In a bid to stay competitive, Nio’s Swedish counterpart, Polestar, also has plans to introduce its smartphone in December. Additionally, tech giants like Apple and Xiaomi have been exploring the automotive industry.
It’s worth noting that Huawei entered the electric car market in China nearly two years ago with its Aito brand, integrating its smartphone operating system into the vehicles.
William Li, CEO of Nio, has emphasized that the smartphone will enable users to seamlessly connect with their Nio vehicles.
Interestingly, the Nio smartphone will be available for purchase by anyone in China, regardless of whether they own a Nio car. The Nio app currently boasts 600,000 active daily users, almost 1.5 times the number of Nio car owners.
Li clarified that, for now, there are no plans to expand the smartphone’s availability to the European market, at least until market conditions become more favorable.
While acknowledging the intense competition in the domestic EV market, Li remains confident that Nio’s strategic business investments will serve as a deterrent for new players entering the market.
Nio had previously announced its intention to release a new vehicle under the “Alps” brand in the second half of the coming year.
The EV manufacturer has encountered financing challenges and delays in the past due to sluggish deliveries. However, it recently secured $740 million from a fund backed by Abu Dhabi and unveiled plans to refinance a portion of its debt.
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