Chinese automaker Geely Holding which owns Volvo is jumping into the smartphone business after its founder set up a new company. Hubei Xingji Shidai Technology Co. Ltd, founded by Eric Li, signed a strategic cooperation agreement with Wuhan Economic and Technological Development Zone, to make mobile phones, according to Geely.
The company will be headquartered in Wuhan and will focus on “integrating global technologies and resources to develop premium smart devices including smartphones to global consumers,” Geely said in a press release.
Geely is the first established carmaker to commit to selling smartphones, though smartphone makers are venturing into the electric vehicle market. Geely’s entry into smartphones highlights the automaker’s drive to tap into new areas which has seen the company venture into satellites and flying cars. China’s smartphone shipments declined 17% year-on-year in the second quarter of this year, according to research firm Canalys. Globally, shipments grew more than 13%, IDC data shows.
As Huawei’s market share declined due to U.S. sanctions, Chinese rivals like Xiaomi, Oppo and Vivo looked to snap up customers. Geely is entering a cut-throat market and could face off against the likes of Apple, Samsung, and Xiaomi in the premium smartphone category and the company has not given details about the branding of the phones or when they might launch but said that smartphones complement its automobile business.
Li said mobile phones and devices can act “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.”
Consumer hardware companies have been piling into the smart electric vehicle sector. In March, Xiaomi founder Lei Jun said his company would formally enter the electric vehicle market and invest $10 billion over the next 10 years. Huawei and Foxconn have also entered the sector via partnerships, while Apple has reportedly been conducting research and development for a smart car of its own.
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