The chairman and founder of Chinese automaker Zhejiang Geely Holding, Eric Li has put in motion a bold plan to go into smartphone production with the first units coming out of the new company as early as 2023. Li is believed to hold a majority stake in the new smartphone company.geely

The move by the Chinese carmaker who also owns Volvo seems the first from an automaker. The common trend in the industry is smartphone companies delving into car manufacturing. Apple, Xiaomi, and Huawei are some of the smartphone manufacturers that are already making progress in the development of their own branded electric vehicles, albeit with some strong partnerships with established EV manufacturers

Li had made some really futuristic plans that are still hanging in the air, the move for the smartphone market seems to be solid and bold indeed. A foray into the smartphone market will throw Geely into intense competition for a market that is experiencing some levels of saturation. The big hitters in the Chinese smartphone market are Xiaomi and Apple on the high end, while several other brands compete for the huge mid-range and low-end segment.

According to Li, the major trend in the coming future is to create user ecosystems across borders to provide a more convenient, smarter, and connected multi-screen experience. The new company is named Hubei Xingji Shidai Technology Co Ltd, and it is making progress to establish its headquarters in Wuhan, China where it will develop smart devices, smartphones inclusive. There is 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.

The company has set a very ambitious short-term and long-term target. However, time will tell whether it will become a success or not.

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