NIO Phone 2 exposed, will it be the “main phone” for NIO car owners? – Sina Hong Kong

When it comes to “cross-border car manufacturing,” one of the most successful examples in the minds of many is Xiaomi. Its first pure electric car, the Xiaomi SU7, released at the end of last year, sparked a lot of discussion. Market data shows that the Xiaomi SU7 received over 80,000 pre-orders within 24 hours of the announcement, which is quite rapid.

At the same time, many car companies are trying to enter the smartphone market. For example, NIO released its first smartphone, the NIO Phone, at the NIO IN 2023 event, which also caused widespread discussion. However, unlike Xiaomi’s car-making venture, the market is quite apprehensive regarding the arrival of the NIO Phone. The most crucial issue is that many consumers do not believe that car companies can make good mobile phones.

(Source: Weilai)

NIO CEO Li Bin is actually quite serious regarding building mobile phones. Not only has he publicly mentioned the plan of “launching a mobile phone every year” numerous times, but he also believes that building mobile phones is an essential part of building the NIO ecosystem. Recently, NIO Phone 2 has also quietly obtained a network access license. Perhaps we can expect its arrival at this year’s NIO Innovation Day.

Although the NIO Phone has not achieved the same success as the Xiaomi SU7, it is one of the most successful cases of cross-border mobile phone manufacturing by car companies. With its iterative model regarding to be released, NIO Phone 2 might allow NIO to establish its own foothold in the mobile phone market.

The pricing is no longer a concern,

NIO Phone 2 is to be the main phone for car owners

In reality, the first generation NIO Phone is not as bad as many imagined. Its Snapdragon 8 Gen 2 leading version, 16GB + 1TB storage configuration, and 50-megapixel triple-camera setup are all mainstream flagship hardware configurations. Therefore, as an iterative model, the NIO Phone 2’s configuration will inevitably develop towards “top-tier.”

In terms of core configuration, NIO Phone 2 is expected to be equipped with the leading version of the Qualcomm Snapdragon 8 Gen 3. This version is currently featured on the Red Magic 9S Pro series. The main difference from the standard Snapdragon 8 Gen 3 is that the core frequency is slightly increased, resulting in enhanced theoretical performance. The storage solution should offer a new version of 24GB+1TB, as large memory has started to become popular. If the goal is to “pile on high-end specs,” there is no reason why 24GB memory mightn’t be used.

The most significant change in the design of NIO Phone 2 is still the front screen. The curved screen of the previous generation has been replaced with a curved screen with equal depth on all four sides. The specific style can be compared to the Xiaomi Mi 14 Ultra. It has to be said that even though the NIO Phone has received mixed reviews, NIO’s design and aesthetics are still online. The screen size remains similar to the previous generation at 6.78 inches. The Samsung E7 display panel offers a 2K resolution and supports LTPO dynamic refresh rate.

(Source: 9to5Google, NIO Phone 2 test plan)

Additionally, the network certification mentions 100W fast charging. While it doesn’t explicitly state that NIO Phone 2 will support wireless charging, considering that wireless charging is an essential feature for NIO car owners, it is theoretically unlikely to be omitted in this generation.

In the imaging department, NIO Phone 2 will most likely retain the triple-camera solution of the previous generation, namely a 50-megapixel main camera, a 50-megapixel ultra-wide-angle camera, and a 50-megapixel telephoto camera. However, this year, all flagship models are rolling out telephoto lenses, and the main camera and telephoto lens of the first generation NIO Phone have clearly failed to keep pace with the mainstream. If NIO wants to maintain its flagship phone status, then imaging must also be taken seriously.

The most significant issue with the first-generation NIO Phone was its pricing. The starting price of 6,499 yuan was much higher than the 5,999 yuan price tag of the same generation Xiaomi Mi 13 Ultra. Even though NIO car owners might choose to use points for deductions, even with that, the price wasn’t significantly cheaper. Reports suggest that NIO Phone 2 will add a storage solution, which will reduce the starting price and bring it back to the average level of flagship phones. It is estimated that the 12GB+256GB version will be priced at 5,999 yuan.

(Source: Weilai)

Overall, the competitiveness of the NIO Phone 2 doesn’t stand out significantly. Especially this year, all flagship ultra-large models are pushing the boundaries of materials and prices. Several brands, primarily OPPO and Vivo, have also launched new AI technologies and concepts that have attracted many consumers to upgrade their phones, which naturally includes some NIO car owners. Li Bin previously mentioned that NIO’s vision for making mobile phones is to provide a better choice for iPhone and Android users. However, if the NIO Phone itself is not strong enough, even NIO owners may be hesitant to invest in it.

Sprint into the mobile phone market,

It’s time for Weilai to give it a try

Following NIO, many car companies have begun to enter the mobile phone market, such as Polestar and Hongqi. While their models are similar, the latter relies on the Meizu mobile phone team and hardly needs to dedicate much energy to mobile phone manufacturing. But NIO is different. Although the NIO Phone bears some resemblance to OPPO’s offerings, it is a comprehensive and independent product line.

Looking back at the market performance of the first generation NIO Phone, it is easy to see NIO’s predicament in the mobile phone market. The NIO Phone focuses on seamless connection and intelligent interconnection with NIO cars. This selling point has resonated with NIO car owners and technology enthusiasts, earning it widespread praise. However, as a first-generation product, the NIO Phone still has some shortcomings in hardware configuration and software optimization, which has led to its inability to secure a larger share in the fierce market competition.

(Source: Weilai)

Furthermore, the NIO Phone’s sales model has created potential risks for NIO’s development in the mobile phone market. Unlike Xiaomi, which manufactures cars that can be purchased by anyone, regardless of whether they are Xiaomi users, NIO’s offerings are restricted to NIO car users only. This significantly hinders its sales potential. As mentioned earlier, the NIO Phone is a relatively independent product line, requiring independent investment in design and research and development funds. The procurement of hardware and the development of algorithms also need to be handled independently, adding to expenses.

Li Bin has also addressed the NIO Phone’s sales issue, acknowledging that it is practically difficult for NIO to generate profits from mobile phone production.

This highlights a significant difference between the cross-border ventures of car companies and mobile phone manufacturers. In contrast, car companies’ demand for mobile phone production is primarily to serve existing customers. They seem to have little interest in acquiring new users or expanding their reach to ordinary consumers within the mobile phone market. However, NIO Phone’s plan is to release an update every year. If this product line remains unprofitable, it will also have consequences for NIO itself.

Xiaolei speculates that the NIO Phone 2’s sales approach may not be as narrowly restricted as the previous generation. For instance, the official mall may be opened to allow ordinary consumers to purchase NIO phones. The best strategy is to learn from the successful experiences of other technology brands and expand market coverage through a combined online and offline sales model.

The inherent advantage of the NIO Phone is its pristine system. It boasts a relatively rare zero-advertising system within the current mobile phone market. The system optimization aspect has reportedly been aided by OPPO’s ColorOS team, ensuring smoothness and functionality to a certain extent. If NIO chooses to make it available for sale, the NIO Phone might still entice consumers who prioritize a pure system, gradually transforming them into the target audience of NIO Automobile. In fact, the Xiaomi SU7’s ability to secure over 80,000 pre-orders within 24 hours is inseparable from the loyal Xiaomi fanbase accumulated over the years.

(Source: Weilai)

If NIO intends to continue launching a new mobile phone annually, it’s time to contemplate a new strategy.

It all depends on “car fans” to pay for it.

Can the NIO Phone plan still work?

The update cadence of the NIO Phone aligns with that of the iPhone. While there won’t be standard and Pro versions, a new phone will still be launched each year. However, Li Bin later revealed that NIO Phone will currently attempt to release the third generation. Its success will depend on its specific performance.

As mentioned earlier, the primary service scope of the NIO Phone currently remains NIO car owners. Therefore, Li Bin’s comment regarding “looking at the performance” likely refers to the sales volume of NIO cars and the level of support for the NIO Phone among NIO phone owners.

NIO’s 2023 annual financial report revealed that its total revenue reached RMB 55.618 billion, representing a year-on-year growth of 12.9%. In 2023, NIO delivered a total of 160,038 vehicles, marking an 8.2% increase from the previous year. Based on delivery data, NIO’s growth continues, laying a solid foundation for the development of the NIO Phone.

(Source: Weilai)

However, Xiaolei also noticed that a significant amount of information regarding the first-generation NIO Phone appeared on second-hand trading platforms. Based on information from these sellers, most of them are NIO car owners. This suggests that the NIO Phone may not be able to convince NIO owners to use it as their primary phone, which somewhat contradicts NIO’s initial intention behind making mobile phones.

(Source: Xianyu)

If the NIO Phone wants to continue its updates, the key lies in two areas. Firstly, refine the product so that the NIO Phone itself possesses strong market competitiveness, such as partnering with world-leading supply chain partners for chips and screen suppliers. Secondly, it’s essential to understand the core needs of NIO car owners, focusing on areas where Weilai excels beyond car-machine interconnection, such as imaging, AI, game performance, etc.

Ultimately, as a mobile phone, the NIO Phone may not have significant flaws. Its iterative product, the NIO Phone 2, will also be a standard flagship model, but effectively serving the target audience is crucial. We believe that with continuous iterative upgrades, NIO will become more adept at mobile phone production, and technological innovation and services will increasingly prioritize consumer sentiment. However, whether the NIO Phone 2 can capture the market and users’ favorability will only become clear upon its release.

NIO Phone 2: Can NIO Conquer the Smartphone Market?

In the ever-evolving world of technology, cross-border ventures are becoming increasingly common. One such noteworthy example is the foray of car companies into the smartphone market. While Xiaomi’s foray into electric car manufacturing has been met with considerable success, the success of car companies entering the smartphone market remains uncertain.

NIO Phone: A Second Attempt at Smartphone Domination

NIO, a prominent electric vehicle manufacturer, launched its first smartphone, NIO Phone, in 2023, generating significant buzz. However, the reception was met with skepticism, as many consumers questioned the car company’s ability to deliver a competitive smartphone experience.

(Source: Weilai)

Despite the initial reservations, NIO CEO Li Bin remains committed to the smartphone venture, aiming to release a new NIO Phone annually, considering it a crucial component of the NIO ecosystem. With NIO Phone 2 on the horizon, there is renewed anticipation to see if this iteration can solidify NIO’s place in the competitive smartphone arena.

NIO Phone 2: Features, Pricing, and Expectations

The first-generation NIO Phone, despite its shortcomings, boasts flagship hardware specifications, including the Snapdragon 8 Gen 2, 16GB + 1TB storage, and a 50-megapixel triple-camera system. This sets a high bar for NIO Phone 2, which is expected to enhance these features.

Core Features and Hardware

• Snapdragon 8 Gen 3: Expected to be equipped with the leading version of Qualcomm Snapdragon 8 Gen 3, offering enhanced performance.
• 24GB+1TB Storage: To cater to the growing demand for large memory, NIO Phone 2 is rumored to offer a 24GB+1TB storage configuration.
• Curved Display: The previous generation’s curved screen will be replaced with a curved screen with equal depth on all four sides, mirroring the design of the Xiaomi Mi 14 Ultra. The screen size will remain at 6.78 inches, featuring a 2K resolution Samsung E7 display panel with LTPO dynamic refresh rate.

(Source: 9to5Google, NIO Phone 2 test plan)

Pricing and Target Audience

One of the significant challenges of the first-generation NIO Phone was its high starting price. NIO Phone 2 is expected to address this issue by introducing a more competitive price point, likely starting at 5,999 yuan for the 12GB+256GB model.

(Source: Weilai)

NIO Phone 2 aims to be the go-to phone for NIO car owners, offering a seamless integration with the NIO ecosystem.

Navigating the Competitive Smartphone Landscape

NIO Phone 2 faces stiff competition in the smartphone market, where brands like OPPO and vivo are aggressively pushing AI innovations. To stand out, NIO needs to excel in various areas, including imaging, AI, and game performance.

The Sales Model: A Crucial Factor for Success

The sales model of NIO Phone is one of the major challenges it faces. Unlike Xiaomi, which caters to a wider audience, NIO Phone primarily targets NIO car owners, limiting its potential customer base. Moreover, the independent product line requires significant investment in research and development, design, and manufacturing, increasing the overall expenses.

(Source: Weilai)

To overcome these hurdles, NIO Phone 2 may adopt a more open sales model, expanding its reach beyond NIO car owners. A hybrid online and offline sales strategy might significantly boost market visibility and potential sales.

One of NIO Phone’s strengths is its ad-free system, a rarity in the current smartphone market. With software optimization assistance from OPPO’s ColorOS team, NIO Phone 2 might attract consumers seeking a pure and smooth user experience. By broadening its sales approach, NIO Phone has the potential to appeal to a wider audience, eventually bringing them into the NIO ecosystem.

(Source: Weilai)

The success of NIO Phone 2 hinges on whether it can resonate with NIO car owners and convince them to use it as their primary phone. Expanding the product’s appeal beyond the loyal NIO user base will be crucial for long-term growth.

NIO Phone 2: The Future Outlook

The future of NIO Phone hinges on the success of NIO as a car manufacturer and the response of NIO Phone 2 to the existing user base. While NIO’s sales figures show steady growth, the second-hand market reflects that NIO Phone has not yet achieved its goal of becoming the go-to phone for NIO owners.

(Source: Weilai)

To succeed in the long run, NIO Phone needs to establish its own identity, standing out from the competition, by partnering with leading supply chain players and incorporating customer-centric features. In essence, NIO Phone 2 holds the key to unlocking NIO’s aspirations in the smartphone market. However, only time will tell if NIO Phone 2 can win over the hearts of consumers and carve out a significant position in the competitive smartphone landscape.

(Source: Xianyu)

The future of NIO Phone is intriguing, with the potential to revolutionize the automotive and smartphone industries. Only time will tell if it will become a benchmark for cross-border success or another attempt that falls short of expectations. The launch of NIO Phone 2 will undoubtedly be a crucial turning point, shaping the trajectory of NIO’s smartphone ventures for years to come.