For the rumors of making mobile phones, Weilai Automobile finally gave an official certification.
A few days ago, Li Bin, CEO of Weilai Automobile, was asked in the interview column whether he was preparing to enter the mobile phone market, and the founder responded that "it is indeed in the research stage."
Previously, the outside world has been talking about the construction of mobile phones by Weilai, there is speculation that it hopes to expand its business territory, and there is also an analysis of Weilai's customized services for the layout of vehicles. However, no matter what kind of idea, Weilai's move to jump into the Red Sea in one fell swoop is somewhat unsightly.
For the reason for making mobile phones, Li Bin mentioned that users have feedback on "whether there can be a mobile phone that can better connect with the car", prompting Weilai to start studying this industry. In addition, Li Bin also gave a key explanation, that is, to deal with the threat from Apple's car, so that the outside world realized that Weilai chose to enter the mobile phone market, perhaps it has its helplessness.
Keep your keys
The news of Nio's entry into the mobile phone market was already out in February, when it was reported that Yin Shuijun, the former president of Meitu Mobile Phone, joined NIO and led its mobile phone business, and the relevant planning was implemented before Xiaomi announced the car.
Li Bin did not deny the news in the interview. Since then, in the WeChat group of a Weilai user, Li Bin has further explained the reasons for entering the mobile phone business.
Li Bin mentioned that mobile phones are the most important devices to connect cars, but in the past two years of Weilai's user base, the mobile phone system data has changed a lot. "Before Huawei was suppressed by the United States, 50% of Weilai users used Apple and 40% used Huawei, and now, the proportion of Apple mobile phones is showing an upward trend."
The impact of this phenomenon has gradually become prominent: due to Apple's closed attitude to the automotive industry, the UWB (ultra-broadband) standard of THE second-generation platform products of Weilai Automobile is not accepted by the Apple mobile phone port, and the Users of Weilai who use Apple's mobile phone cannot experience this function, and Weilai is now in a very passive situation.
Li Bin speculated that if Apple cars begin to land in 2025, 60% of Weilai users may use Apple mobile phones, and Apple systems may still be closed, if Weilai does not lay out its own mobile phones, it will have no defense, the situation will be very unfavorable, "equivalent to handing over its own keys to the opponent."
Indeed, in the current era of rapid iteration of mobile communications, the interconnection of mobile phones and cars has long been developed in depth, for Apple, which ranks first in China's smartphone market share in 2021, although the car-making project has not yet landed, this advantage has laid a good foundation for it to open up the automobile market. In addition, the huge mobile phone user base will also become a weapon for Apple cars to compete with their opponents.
Li Bin's precautions are not unreasonable, but in the face of the giant's smartphone market, Weilai's battle is not easy to fight.
What to make a mobile phone?
The matter of making mobile phones has been determined, and the next thing to consider is the funding and research and development team.
In terms of the team, as mentioned above, informed sources revealed that Yin Shuijun was the project leader, in addition, there was news that Weilai had tried to dig up a person in charge from the glory mobile phone, but in the end there was no negotiation. Recruitment for the overall team has already begun.
From a technical point of view, although Weilai Automobile, as a new power enterprise in the head of car manufacturing, has the label of scientific and technological intelligence, it is still a new face to jump from the automotive industry to the mobile phone market, and it is not easy to create a competitive smart phone.
Compared with self-research from 0, there is a more convenient way for Weilai to acquire existing mobile phone brands. But to take this road, in addition to looking for acquisition targets that can be played, Weilai also needs to consider the problem of funds, both of which seem to be difficult, especially the problem of funds.
As a car company in the same cross-border mobile phone industry, Geely Automobile established Hubei Interstellar Times Technology Co., Ltd. in September last year, announcing that it would enter the high-end smartphone market with a project investment of 10 billion yuan.
From the perspective of financial strength, compared with Geely Automobile Group, which has more than ten sub-brands, Weilai obviously has some gaps. According to the financial report data, Geely Automobile's total revenue in 2021 was 101.611 billion yuan and net profit was 4.353 billion yuan, while Weilai Automobile's total revenue in 2021 was 36.14 billion yuan and a net loss of 4.017 billion yuan.
For Weilai Automobile, which is still in the midst of losses, it is somewhat unable to allocate a large amount of funds from the owner industry to support the manufacture of mobile phones.
Nio prepares for Apple
Despite the difficulties, Apple threatens the current situation, and Weilai is also determined to build mobile phones. After all, in addition to Apple's lack of ports, Li Bin has also shown his jealousy of Apple's car project in public many times before.
In 2020, when Weilai's first flagship car, ET7, was released, Li Bin publicly stated that Tesla's class of cars is not a rival, and ET7 will compete with Apple Motors. In January last year, the leader of this new force enterprise said that Apple pursues the combination of technology and humanities, and Weilai has the same idea, so Apple Auto may be the ultimate opponent of Weilai.
In the latest interview, when asked how to view the possible impact of Apple's car and Xiaomi's car, Li Bin replied: If Apple successfully launches a car, it will definitely be positioned in the mainstream high-end market, and under the influence of Apple's user ecology and brand power, Apple's cars will have strong competitiveness. "Other new entrants may not be in direct competition with NIO."
Between the words, it is not difficult to see Weilai Automobile's concern about the overlap between Apple's future positioning and itself.
In the first half of last year, Li Bin said that the average price of Weilai Automobile reached 430,000, and it initially built a high-end brand. According to The 2021 financial report data of Weilai Automobile, the unit price of its 2021 model is about 410,000, although it is different from the data previously said by Li Bin, but it is basically the same.
The initial establishment of a high-end brand seems to be far from enough to meet the development needs of WEILAI Automobile. After the 400,000 price band occupied a place, Li Bin said that the price band of a car brand's energy capacity is limited. Therefore, NIO began to plan to "explore the mass market" by launching a sub-brand to seek a larger market scale.
Busy gaining a foothold in the mainstream high-end market, busy expanding its share in the sinking market, Weilai Automobile obviously has a lot to do at the moment, and before the arrival of Apple Car, this head car-making new force company has been preparing for the battle.
On the other hand, apple car projects that have stagnated several times, although they have not yet appeared, have already brought a lot of pressure to Weilai Automobile with the interconnection of vehicles and machines.
However, the foundation of the owner industry is still unstable, and the outside world cannot help but worry, what kind of solid moat can be built for Weilai Automobile in the mobile phone market? After all, Weilai mobile phone will have to face a market that has long been mature and full of masters.