LG Electronics Aims for $79 Billion in Sales by 2030 with $39.5 Billion Investment

LG Electronics, the Korean electronics giant, has announced its plan to invest $39.5 billion in research and development, facilities, and strategic investments. The company aims to reach $79 billion in sales by 2030, up from $51.4 billion in 2022. This move comes as LG shifts its focus from the smartphone industry to become a platform-based technology company.

Transformation Strategy

With the decline of its mobile phone business, LG has implemented a new strategy to transform itself into a maker of home appliances and electronics. The company plans to strengthen its service platforms in home appliances, such as TVs and home appliance products. It also aims to strengthen its business-to-business units by leveraging its experience in the consumer market. Additionally, LG plans to accelerate new growth businesses, including electric vehicle charging and digital health.

WebOS as a Service Platform

LG, known for its TV sets, is not only a manufacturer and seller of TVs but also aims to offer its webOS as a service platform. The company plans to supply webOS to various TV manufacturers and install it on digital signage and vehicle displays. This expansion into new media platforms will allow LG to deliver personalized advertising and TV and entertainment content from a wide range of channels and partners.

Exploring Emerging Sectors

In recent years, LG has been venturing into emerging sectors through strategic acquisitions. The company has acquired ZKW, an Austrian-based provider of automotive headlights and lighting systems, and Alphonso, an American advertising technology company. LG has also acquired Cybellum, an automotive cybersecurity startup, and AppleMango, a South Korean electric vehicle battery charging developer.

LG’s Production of EV Chargers

Last month, LG began production of electric vehicle chargers in Seoul. The company rebranded its electric vehicle charging division from AppleMango to HiEV Charger. LG has established an electric vehicle company called Vehicle Component Solutions (VS), which focuses on the development of infotainment, telematics, and advanced driver assistance systems.

Digital Health Initiatives

LG is also making strides in the digital health sector. The company plans to collaborate with LG Nova, its internal startup incubator located in North America. Additionally, LG is in the process of setting up a venture capital unit to invest in startups in the digital health industry.

Future Outlook

LG Electronics reported record-breaking revenue of 19.9 trillion won ($15.2 billion) for the April-June quarter. The company is optimistic about its future prospects and aims to continue its transformation into a smart living solutions company. LG’s CEO, William Cho, stated that the company will reinvent the way it works and communicates to achieve its goals.

Expanding Opportunities and Innovations in the Technology Industry

The technology industry is continuously evolving, and companies like LG Electronics are at the forefront of driving innovation and exploring new opportunities. With its strategic investments and transformation strategy, LG aims to lead as a platform-based technology company and expand its reach in various sectors.

Shifting Focus and Transformation

In response to the decline of its mobile phone business, LG made a strategic decision to shift its focus to becoming a maker of home appliances and electronics. This transformation allows the company to leverage its expertise and experience in the consumer market to strengthen its business-to-business units. By transforming itself into a platform-based technology company, LG opens up new opportunities for growth and expansion.

The Power of Service Platforms

LG’s decision to offer its webOS as a service platform demonstrates the company’s commitment to delivering personalized and engaging experiences to its customers. By supplying webOS to various TV manufacturers and expanding its presence in digital signage and vehicle displays, LG can reach a wider audience and provide seamless integration across different media platforms. This move positions LG as a leader in the smart living solutions industry.

Exploring New Horizons

LG’s venture into emerging sectors through acquisitions showcases its commitment to exploring new opportunities and staying ahead of the technological curve. By acquiring companies in automotive lighting, advertising technology, automotive cybersecurity, and electric vehicle charging, LG expands its capabilities and positions itself as a key player in these industries. These strategic investments provide LG with the foundation to drive innovation and create cutting-edge solutions.

Advancements in Electric Vehicle Charging

LG’s production of electric vehicle chargers and the establishment of its electric vehicle company, Vehicle Component Solutions, demonstrate the company’s dedication to the future of transportation. As the demand for electric vehicles grows, the need for efficient and reliable charging infrastructure becomes essential. LG’s expertise in this area enables it to provide advanced solutions and contribute to the widespread adoption of electric vehicles.

Digital Health and Well-being

The digital health sector presents significant opportunities for LG to make a positive impact on people’s lives. By collaborating with LG Nova and investing in startups in the digital health industry, LG can develop innovative solutions that promote well-being and enable individuals to take control of their health. From wearable devices to remote monitoring systems, LG’s involvement in the digital health space showcases its commitment to improving lives through technology.

Conclusion

LG Electronics’ ambitious plans and strategic investments position the company for success in the rapidly evolving technology industry. By shifting its focus and investing in new growth areas, LG aims to reach new heights and achieve its goal of $79 billion in sales by 2030. With its strong commitment to innovation and its transformation into a platform-based technology company, LG is well-positioned to lead the way in shaping the future of smart living solutions.

Summary

LG Electronics plans to invest $39.5 billion in research and development, facilities, and strategic investments as part of its transformation into a platform-based technology company. The company aims to reach $79 billion in sales by 2030, up from $51.4 billion in 2022. LG’s strategic investments in various sectors, such as electric vehicle charging and digital health, showcase its commitment to innovation and exploring new opportunities. The company’s focus on offering its webOS as a service platform and its expansion into emerging sectors through acquisitions highlight LG’s dedication to driving industry advancements. LG’s investments in electric vehicle chargers and digital health initiatives underline its commitment to shaping the future of transportation and well-being. With its transformation strategy and bold vision, LG Electronics is poised to lead the way in the technology industry and deliver innovative solutions to enhance lives.

lg electronics plans to spend $39.5 billion (50 trillion won) on R&D, facilities, and strategic investments 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 giant, once a big name in the smartphone industry, implemented its new strategy, transforming its maker of home appliances and electronics into a platform-based technology company.

LG says it will strengthen service platforms in its home appliances such as TV and home appliance products, strengthen business-to-business (B2B) units by leveraging its experience in the B2C market, and accelerate new growth businesses such as EV charging. ) and digital health.

The company’s announcement comes roughly two years after LG closed its mobile phone business at a loss worldwide in 2021 to focus on its growth areas such as smart homes, connected devices, 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 as a smart living solutions company that connects and expands customer spaces and experiences, rather than its current position as the best home appliance brand,” William Cho, CEO of LG. Electronics, he said in a statement. “We will establish a whole new LG by reinventing the way we work and communicate as we move toward this goal.”

The company, which annually sells about 100 million hardware products, not only makes and sells TV sets, but also wants to offer webOS as service platform provideraccording to Cho in his speech in Seoul. For example, LG sells almost 200 million smart TVs equipped with web Operating System, delivering personalized advertising and TV and entertainment content from more than 3,000 broadcast channels and 2,500 partners, including over-the-top streaming platforms.

“We are supplying our webOS to various TV manufacturers and plan to actively install webOS on our digital signage and vehicle displays to expand 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.

In fact, LG has been dabbling in emerging sectors through acquisitions, including ZKWan Austrian-based provider of automotive headlights and lighting systems; alfonsothe American advertising technology company; Cibelo, an automotive cybersecurity startup; and AppleMango, a South Korean electric vehicle battery charging developer. LG started production of EV chargers in Seoul last month and rebranded from AppleMango to HiEV Charger.

The company has established an electric vehicle company called Vehicle Component Solutions (VS) company in 2013, which develops infotainment, telematics and advanced driver assistance systems (ADAS).

As for the digital health business, LG will work with its internal startup incubator lg nova in North America and is in the process of setting up a venture capital unit to back startups, the company’s 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 publish its full earnings report at the end of July.