Nio's smartphone business shifts gears as EV hardware chief takes over

06 January 2024

In a strategic move to streamline its operations and strengthen its core electric vehicle business, Nio, the Chinese electric car manufacturer, is bidding farewell to its smartphone business head, Yin Shuijun, and passing the torch to its hardware chief, Bai Jian.

Yin Shuijun had been at the helm of Nio's smartphone venture since early 2022, bringing with him a background as the president in charge of the phone business at the Chinese beauty app Meitu. However, Nio's internal email dated January 5th, 2024, revealed that Yin is stepping down, and Bai Jian is set to take over the reins of the smartphone division.

This development does not necessarily signal the end of Nio's smartphone business but rather a reconfiguration. Some industry insiders speculate that Nio has plans to launch at least three generations of phone products. Previously, Nio had committed to investing RMB 1 billion ($140 million) annually in its phone business, and they intend to integrate the Nio Phone into EV models under sub-brands codenamed Alps and Firefly.

The Nio Phone unveiled at the Nio Innovation Day event in September 2023, is designed to provide Nio car owners with a car-centric connectivity experience. It boasts an action button that allows users to quickly access more than 30 functions, including controlling the vehicle's features like adjusting air conditioning and seat massage settings. Nio positioned this smartphone as the world's first device truly tailored for automobiles.

However, the overall financial performance of Nio faced challenges in 2023, particularly in terms of delivery numbers, leading to a reconsideration of the company's diversification strategy. Nio's founder, chairman, and CEO, William Li, acknowledged these hurdles and announced plans to reduce positions by approximately 10 percent. This reduction aims to enhance resource efficiency and redirect investments toward projects that offer a more immediate contribution to the company's financial performance.

While Nio initially pursued in-house battery manufacturing, Li recognized that this approach might not improve gross margins within three years. Consequently, the company has shifted its focus towards commissioning battery production to lower costs. Additionally, Nio has plans to spin off its battery manufacturing unit as part of its ongoing efforts to optimize operations and reduce expenses.

Bai Jian, Nio's hardware chief, has now confirmed that he will be overseeing the smartphone business, underscoring Nio's commitment to bridging the gap between vehicles and mobile devices. Bai, who has a PhD in cryptography and communications engineering from the Beijing University of Telecommunications, joined Nio in November 2020 after holding positions at Xiaomi and Oppo.

In an era where the integration of smartphones and vehicles is becoming increasingly seamless, Bai envisions a future where phones and cars are closely intertwined. He hints at Nio's plans to use its own developed chips in their smartphones, emphasizing the convergence of technology between phones and vehicles. Nio has already made significant strides in chip development, announcing its first in-house LiDAR main control chip, Yang Jian, and an autonomous driving chip, the Shenji NX9031, during the unveiling of its EV flagship, the Nio ET9.

As Nio continues to evolve and refocus on its core EV business, the smartphone division's transition under Bai Jian's leadership signifies a strategic shift for the company. While Nio's commitment to innovation remains steadfast, these changes underline the importance of financial sustainability and maintaining a sharp focus on their electric vehicle offerings.

Via