GUANGZHOU, China — Chinese language automaker Geely Holding is leaping into the smartphone enterprise after its founder arrange a brand new firm.

Hubei Xingji Shidai Expertise Co. Ltd, based by Eric Li, signed a strategic cooperation settlement with Wuhan Financial and and Technological Improvement Zone, to make cellphones, in keeping with Geely.

The corporate shall be headquartered in Wuhan and can deal with “integrating international applied sciences and assets to develop premium sensible units together with sensible telephones to international shoppers,” Geely mentioned in a press launch.

Geely’s entry into smartphones highlights the automaker’s drive to faucet into new areas which has seen the corporate enterprise into satellites and flying vehicles.

China’s smartphone shipments declined 17% year-on-year within the second quarter of this 12 months, in keeping with analysis agency Canalys. Globally, shipments grew greater than 13%, IDC information reveals.

As Huawei’s market share declined as a result of U.S. sanctions, Chinese language rivals like Xiaomi, Oppo and Vivo seemed to snap up clients.

Geely is getting into a cut-throat market and will face off in opposition to the likes of Apple, Samsung and Xiaomi within the premium smartphone class.

The corporate has not given particulars concerning the branding of the telephones or once they would possibly launch however mentioned that smartphones complement its vehicle enterprise.

Li mentioned cellphones and units can act “as a pathway to larger automotive purposes.”

“There’s a shut connection in applied sciences inside clever automobile cockpits and smartphone software program applied sciences. The foremost pattern within the coming future is to create consumer ecosystems throughout borders and supply customers with a extra handy, smarter, and seamlessly linked multi-screen experiences,” he added.