Geely Venturing Into Smartphone Business
Chinese automaker Geely is venturing into the Smartphone business after its founder Li Shufu set up a new company. Hubei Xingji Shidai Technology Company Ltd signed a strategic cooperation agreement with Wuhan Economic and and Technological Development Zone, to make mobile phones, according to Geely.
According to press release, the company will be headquartered in Wuhan and will focus on “integrating global technologies and resources to develop premium smart devices including smart phones to global consumers.” The entry into Smartphones highlights Geely’s drive to tap into new areas which has seen the company venture into satellites and flying cars.
Geely is entering a cut-throat market and could face off against the likes of Apple, Samsung and Xiaomi in the premium Smartphone category. Although the company hasn’t given details about the branding of the phones or the launch timeline but said that Smartphones complement its automobile business. According to Li Shufu, mobile phones and devices can act “as a pathway to greater automotive applications.” He said:
“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.”
Geely’s move into selling Smartphones is in fact a reversal of the trend where Smartphone makers are making inroads into the automotive market, such as Huawei and Xiaomi and their electric vehicle projects.