LG Electronics plans to spend $39.5 billion (50 trillion won) in R&D, facility and strategic investment as it aims to reach $79 billion (100 trillion won) in sales by 2030, up from $51.4 billion (65 trillion won) in 2022.
The Korean electronics behemoth, once a major name in the smartphone industry, rolled out its new strategy, transforming its home appliance and electronics goods maker into a platform-based tech company.
LG says it will bolster service platforms on its home appliances like TV products and white goods, reinforce business-to-business (B2B) units by leveraging its experience in the B2C market and accelerate new growth businesses such as electronics vehicle (EV) charging and digital healthcare.
The company’s announcement comes roughly two years after LG closed its loss-making mobile phone business globally in 2021 to focus on its growth areas such as smart homes, connected devices, the Internet of Things (IoT), B2B solutions, electric vehicle components, robotics, artificial intelligence and platforms.
“LG will continue to pursue its bold vision to transform and lead forward as a smart life solutions company that connects and expands on customers’ spaces and experiences, rather than its current position as the best home appliance brand,” William Cho, CEO of LG Electronics, said in a statement. “We will establish a brand-new LG by reinventing the way we work and communicate while progressing towards this goal.”
The company, which annually sells about 100 million hardware products, doesn’t only manufacture and sell TV devices but also wants to offer webOS as a service platform provider, according to Cho in his speech in Seoul. For example, LG sells nearly 200 million smart TVs equipped with webOS, offering customized advertising and TV and entertainment content from over 3,000 broadcasting channels and 2500 partners, including over-the-top streaming platforms.
“We are supplying our webOS to various TV manufacturers and planning to actively installment of webOS in our digital signage and vehicle displays to expand the media platforms,” Cho said.
LG is also considering the development of a home energy platform, providing a solution that integrates HVAC (heating, ventilation and air conditioning), ESS (energy storage system) and EV charger, Cho added.
Indeed, LG has been wading into emerging sectors through acquisitions, including ZKW, an Austria-based automotive lighting and headlight system provider; Alphonso, the U.S. ad tech firm; Cybellum, an automotive cybersecurity startup; and AppleMango, a South Korean electric vehicle battery charge developer. LG began production of EV chargers in Seoul last month and changed AppleMango’s name to HiEV Charger.
The company has set up an EV company called Vehicle component Solutions (VS) Company in 2013, which develops infotainment, telematics and Advanced driver-assistance systems (ADAS).
As for the digital healthcare business, LG will work with its startup accelerator LG Nova in North America and is in the process of establishing a venture capital unit to back startups, the company CEO said.
LG Electronics said last week it expects to post 19.9 trillion won ($15.2 billion) for the April – June quarter, the highest revenue in the company’s history. The company will release its full earnings report at the end of July.