On August 29th, NIO released its financial report for the second quarter of 2023. The data shows that in the second quarter, NIO achieved a revenue of 8.77 billion yuan (＄1.2 billion), with research and development expenses reaching 3.34 billion yuan (＄458 million), surpassing 3 billion yuan (＄412 million) for three consecutive quarters; cash reserves amounted to 31.5 billion yuan (＄4.3 billion).
During the performance conference call, William Li, founder, chairman, and CEO of NIO, revealed that “the launch of the smartphone will help increase the competitiveness of our vehicles. Currently, we plan to deliver the smartphone product in late September.”
NIO‘s mobile phone has obtained network access permission in early August. It is expected to be equipped with UWB technology, providing efficient and convenient car remote control experience services for NIO car owners. In simple terms, with this technology, NIO car owners can go out without carrying their car keys and unlock their vehicles using just a mobile phone.
William Li once stated in an interview that NIO‘s foray into the smartphone market is not to compete with Huawei or Xiaomi, but rather to meet the needs of users. He mentioned that the synergy between smartphones and cars is becoming increasingly important. For him, if NIO can sell hundreds of thousands of smartphones, he would be very happy if half of their users purchase them, as it would mean they have achieved their goal. According to William Li, car owners feel less pressure when deciding to switch to a smartphone from the same brand, whereas he believes only Apple can successfully convince smartphone users to switch to their brand of cars.