Geely is expanding into smartphones

Zhejiang Geely Holding Group is entering the smartphone market in a drive beyond automobiles.

The announcement came after the Chinese automaker’s chairman and founder, Eric Li, signed a strategic cooperation agreement with Wuhan Economic and Technological Development Zone to develop smart devices, including smartphones.

As Gizmochina notes, the new company is called Hubei Xingji Shidai Technology Co. Ltd. and set to establish its headquarters in Wuhan, China. It has not disclosed any other details on the branding of the phones, but the portal reported that the new company is eyeing to roll out the first units as early as 2023.

There is also an initial capital of up to $1.55 billion dollars for the project, with a targeted revenue of about $1.5 billion dollars within the first year of operations.

According to a press release Geely shared with CNBC, the venture intends to boost Geely’s automobile business, as smartphones serve “as a pathway to greater automotive applications.”

“There is a close connection in technologies within intelligent vehicle cockpits and smartphone software technologies. The major trend in the coming future is to create user ecosystems across borders and provide users with a more convenient, smarter, and seamlessly connected multi-screen experiences,” Li said

If Geely’s project accelerates as planned, the automaker would have to face intense competition versus high-fliers Apple, Samsung, and Xiaomi.

The post Geely is expanding into smartphones appeared first on Speed Magazine.

Source: Speed Magazine PH