Eric Li (Li Shufu), the founder and majority owner of Zhejiang Geely Holding it plansto make premium category products enter into the smartphone market and is therefore willing to invest 10 billion yuan (US $ 1.55 billion).
The businessman’s newly established company, in which he has a 55 percent stake, Hubei Xingji Shidai Technology Co., Ltd. wants to launch the first devices in 2023 and sell 3 million devices in the first year. Plans include 10 billion yuan in the first year, while 150 billion yuan in eight years to achieve profits, and employ 3,000 people. Eric Li previously invested in air taxis and also has a 10 percent stake in German carmaker Daimler.
The manager pointed out that there is a close link between intelligent in-vehicle and smartphone software technologies. And the main trend for the future will be to develop cross-border user ecosystems and provide a more convenient, intelligent and seamlessly connected multi-screen experience. In any case, if the plans come to fruition, Geely will be the first vehicle manufacturing group to make smartphones as well.
Hubei Xingji Shidai Technology Co., Ltd. has signed a cooperation agreement with Wuhan Economic and Technological Development Zone, thanks to which the new company will be based in the Chinese metropolis and will develop its smartphones and other smart devices there. Geely has not yet commented on the information released.
Will Wong, IDC’s China smartphone market analyst, said Geely is so acclaimed that it will have a chance to break into the market for premium smartphones and other smart products. Nonetheless, the manufacturer’s mobile phone business will focus more on strengthening its efforts to develop intelligent vehicles.
Geely, by the way, indicated in March last year that in order to better network its own cars and help with autonomous transport, it wants to launch satellites of its own development and production into orbit around the Earth. The company would thus be independent of its current systems and at the same time set up a subsidiary called Geespace.
Source: SG.hu Hírmagazin by sg.hu.
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