Nio's Hardware Chief to Lead the Phone Business

Credit: TMTPost

BEIJING, January 8 (TMTPOST) – NIO, one of top three electric vehicle (EV) makers in China, has replaced its smartphone division head Yin Shuijun with hardware chief Bai Jian, according to media reports.

Bai will oversee both hardware and smartphone business upon the new appointment, according to an internal email to employees. Yin, who led the team to launch the EV maker’s first smart phone, the NIO Phone, in September, will leave the company after two years as the head of the phone business division.

In addition to NIO's presence in the electric vehicle market, its independent production of smartphones has set it apart from other EV manufacturers. Rumors about NIO entering the smartphone industry surfaced two years ago and NIO Mobile Technology Co., Ltd. was set up in August 2022. NIO’s founder Li Bin disclosed plans for annual smartphone releases at NIO Day 2022, and the NIO Phone officially launched on September 21 after receiving network certification in July.

To build its smartphone team, NIO recruited talents from established manufacturers like OPPO. Yin, formerly president of Meitu's smartphone division, clarified that NIO's entry into smartphones wasn't to catch up with trends but a strategic move for seamless integration with vehicles to enhance user experience and improve user stickiness.

The NIO Phone, equipped with top-tier specifications, including a Qualcomm Snapdragon 8 Gen2 processor and a 50-megapixel camera, stands out with in-car interactions and an ad-free experience. Despite being seen as a secondary device, its 6,499 yuan (US$902 ) starting price appeals to NIO vehicle owners.

Rumors surrounding Yin's departure are about market performance issues, but industry insiders suggest profitability. Li acknowledged slim margins for phone business but assured the profit was in the positive territory. With a focus on exploration and brand awareness, the leadership reshuffling is likely due to company-wide profit pressure.

Bai, who had worked at both OPPO and Xiaomi, is expected to put his past smartphone market experience into his new role. He aims to step up smartphone-car integration and develop image signal processors (ISPs), with a focus on continued innovation.

As the competition in intelligent cockpits is not limited to automakers, NIO's smartphone ambitions do not signal an end to its manufacturing efforts. Bai noted the ongoing efforts to boost connectivity between the car business and the phone business, with plans to release at least three generations of smartphones.

NIO's involvement in smartphone manufacturing is strategic, aiming to retain control amid a user base predominantly using iPhones and Huawei smartphones. Li viewed entering the smartphone business as a defensive strategy, especially with potential entrants like Apple in the automotive sector.

The success or failure of NIO's smartphone venture will require time for validation. The initial flagship positioning is intended to prompt car owners to proactively choose and replace their existing iPhones with NIO Phones. Once both smartphones and cars achieve a cohesive experience in terms of software and hardware, it will likely lead to more users transitioning to NIO's ecosystem.

However, based on current performance, NIO's smartphone has yet to reach that point. Shen Ziyu, the CEO of XINGJI MEIZU, has emphasized on multiple occasions that transferring the human-computer interaction experience from smartphones to in-car systems is a "strike from a higher level," and automotive manufacturers without smartphone software empowerment will gradually fall behind.