autoevolution
 

LG Electronics Turns Its Focus on the Car-of-The-Future Market

Although LG Electronics’ profit for the October to December period in 2015 came in at $301.38 million, a 27 percent increase compared to the same trimester in 2014, the company’s full-year income was $1.03 billion, almost 35 percent less than in 2014. This is mainly the reason the South Korean company plans to develop new areas of business, like automobiles for example.
LG Electronics Turns Its Focus on the Car-of-The-Future Market 1 photo
Photo: Tweak Town
While the TV and smartphone divisions registered negative sales, home appliances and air-conditioning branches recorded a rise in sales.

The company posted sales of $3.26 billion for its mobile division, a figure similar to that registered in 2014. Even if LG has shipped 59.7 million smartphones in 2015, the division reported a fourth-trimester operating loss of 44 billion won.

As LG stated, “The smartphone marketplace is expected to be increasingly competitive in 2016 due to anticipated premium models from competitors and further price competition within the mass-tier space.

The South Korean carmaker now plans to expand its business and apparently the autonomous cars market is the logical move, as its vehicle components division saw a 9 percent quarter-on-quarter rise to 449.4 million won, due to the growing demand for in-car mapping and entertainment systems.

Last year, LG partnered up with General Motors to provide the parts for the upcoming electric car, the Chevrolet Bolt EV. In 2016, the company expects the smart car and electric vehicle component business to grow measurably, as CNBC reports.

LG Electronics is not the only company known for its smartphones, home appliances or electronics to turn its attention to the automotive market. In early December 2015, Samsung announced that it would begin to develop parts for self-driving and Internet-connected cars.

Another South Korean company that also considers developing its own computer chips and sensors used in self-driving cars is Hyundai, which plans to invest no less than $1.7 billion in research.

In a crowded market where giant companies such as Google and Apple are building their own electronic parts, it's a very bold move for any other company, including LG, to enter this world, where stakes are getting higher and higher.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories