LG Electronics, a prominent Korean electronics and appliances company, has unveiled its ambitious strategy to transform into a platform-based tech company.
With the goal of reaching $79 billion (100 trillion won) in sales by 2030, up from $51.4 billion (65 trillion won) in 2022, LG intends to allocate $39.5 billion (50 trillion won) for research and development, facility enhancements, and strategic investments.
The company’s new approach focuses on strengthening service platforms for its home appliances, including TV products and white goods.
It plans to leverage its experience in the business-to-consumer (B2C) market to reinforce its business-to-business (B2B) units, while also accelerating growth in areas such as electric vehicle (EV) charging and digital healthcare.
This announcement comes two years after LG discontinued its global mobile phone business in 2021 due to losses, shifting its attention to areas like smart homes, connected devices, the Internet of Things (IoT), B2B solutions, EV components, robotics, artificial intelligence (AI), and platforms.
William Cho, CEO of LG Electronics, expressed the company’s vision to transform into a smart life solutions company that connects and expands customers’ spaces and experiences.
He emphasized the need to reinvent their work processes and communication methods to achieve this objective.
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While LG is renowned for manufacturing and selling TV devices, it also aims to offer webOS as a service platform provider.
With nearly 200 million smart TVs equipped with webOS sold annually, LG provides customized advertising and TV and entertainment content through over 3,000 broadcasting channels and 2,500 partners globally, including on-demand streaming platforms.
Cho stated that webOS is being supplied to various TV manufacturers and plans are underway to incorporate it into digital signage and vehicle displays, thus expanding the media platforms.
In addition, LG is contemplating the development of a home energy platform that integrates HVAC (heating, ventilation, and air conditioning), energy storage systems (ESS), and EV chargers.
Regarding digital healthcare, LG will collaborate with its internal startup incubator, LG Nova, in North America.
Furthermore, the company is in the process of establishing a venture capital unit to support startups, according to the CEO. LG has been actively exploring emerging sectors through strategic acquisitions.
Notable acquisitions include ZKW, an Austrian automotive lighting and headlight system provider; Alphonso, a U.S. ad tech firm; Cybellum, an automotive cybersecurity startup; and AppleMango, a South Korean electric vehicle battery charge developer.
LG has recently commenced EV charger production in Seoul and rebranded AppleMango as HiEV Charger.
In 2013, LG established Vehicle Component Solutions (VS) Company, an EV-focused subsidiary involved in the development of infotainment, telematics, and advanced driver-assistance systems (ADAS).
LG Electronics, anticipating its highest revenue in the company’s history, projects a figure of 19.9 trillion won ($15.2 billion) for the April to June quarter. The complete earnings report will be released at the end of July.