Chinese automaker Geely launches a high-end smartphone business

Logo of Chinese automaker Geely Vehicle.

Zhang Peng | Getty Illustrations or photos

GUANGZHOU, China — Chinese automaker Geely Holding is jumping into the smartphone small business right after its founder established up a new company.

Hubei Xingji Shidai Technologies Co. Ltd, launched by Eric Li, signed a strategic cooperation arrangement with Wuhan Financial and and Technological Progress Zone, to make cell telephones, according to Geely.

The corporation will be headquartered in Wuhan and will aim on “integrating worldwide systems and means to build quality good products like smart phones to worldwide customers,” Geely reported in a press launch.

Geely’s entry into smartphones highlights the automaker’s travel to faucet into new regions which has viewed the corporation venture into satellites and flying cars.

China’s smartphone shipments declined 17% yr-on-yr in the next quarter of this 12 months, according to research firm Canalys. Globally, shipments grew additional than 13%, IDC info demonstrates.

As Huawei’s current market share declined because of to U.S. sanctions, Chinese rivals like Xiaomi, Oppo and Vivo seemed to snap up prospects.

Geely is getting into a minimize-throat industry and could deal with off in opposition to the likes of Apple, Samsung and Xiaomi in the premium smartphone classification.

Read more about China from CNBC Pro

The corporation has not offered specifics about the branding of the telephones or when they could launch but mentioned that smartphones complement its car enterprise.

Li said cell telephones and units can act “as a pathway to bigger automotive programs.”

“There is a close link in systems within smart motor vehicle cockpits and smartphone software package systems. The big trend in the coming upcoming is to generate person ecosystems throughout borders and deliver people with a a lot more practical, smarter, and seamlessly linked multi-monitor encounters,” he added.