LG Electronics plans $39.5B investment to achieve $79B sales milestone by 2030

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SEO-Friendly News Article: LG Electronics Plans $39.5 Billion Investment to Reach $79 Billion in Sales by 2030

South Korean electronics giant, LG Electronics, has unveiled its ambitious plans to invest $39.5 billion in research and development, facility upgrades, and strategic investments. The company aims to achieve $79 billion in sales by 2030, a significant increase from its 2022 sales of $51.4 billion. The move comes as LG continues to transform itself from a smartphone manufacturer into a platform-based technology company, focusing on home appliances and electronics goods.

LG is set to strengthen its service platforms for home appliances, including TV products and white goods. Additionally, the company is determined to reinforce its business-to-business (B2B) units by leveraging its successful business-to-consumer (B2C) market experience. LG will also accelerate its growth in new business areas such as electric vehicle (EV) charging and digital healthcare.

This announcement comes two years after LG made the strategic decision to shut down its loss-making mobile phone business globally and shift its focus to key growth areas like smart homes, connected devices, the Internet of Things (IoT), B2B solutions, electric vehicle components, robotics, artificial intelligence, and platforms.

In a statement, William Cho, CEO of LG Electronics, expressed the company’s vision for the future, stating, 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. We will establish a brand-new LG by reinventing the way we work and communicate while progressing towards this goal.

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In addition to manufacturing and selling TV devices, LG plans to offer its webOS as a service platform provider. With nearly 200 million smart TVs already equipped with webOS, LG provides customers with a personalized advertising experience and access to a plethora of TV and entertainment content from over 3,000 broadcasting channels and 2,500 partners, including popular over-the-top streaming platforms.

Cho revealed that LG is exploring opportunities beyond TV devices. The company aims to supply webOS to various TV manufacturers and expand its presence in sectors such as digital signage and automotive displays, transforming webOS into a comprehensive media platform.

Furthermore, LG is considering developing a home energy platform that integrates HVAC systems, energy storage systems, and EV chargers. To support its ventures in emerging sectors, LG has made several strategic acquisitions, including ZKW, an Austrian automotive lighting and headlight system provider, Alphonso, a US ad tech firm, Cybellum, an automotive cybersecurity startup, and AppleMango, a South Korean electric vehicle battery charger developer. LG recently commenced EV charger production in Seoul and rebranded AppleMango as HiEV Charger.

Since 2013, LG has operated a dedicated EV company called Vehicle component Solutions (VS) Company, focusing on the development of infotainment, telematics, and Advanced Driver-Assistance Systems (ADAS).

In the field of digital healthcare, LG will collaborate with its internal startup incubator, LG Nova, based in North America. Additionally, the company is in the process of establishing a venture capital unit to invest in promising startups in the healthcare sector.

LG Electronics recently announced its projected revenue of 19.9 trillion won ($15.2 billion) for the April to June quarter, the highest in the company’s history. The company is scheduled to release its full earnings report at the end of July.

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In conclusion, LG Electronics has unveiled its ambitious $39.5 billion investment plan to drive revenue growth and transform into a platform-based technology company. With a strong focus on home appliances, B2B solutions, EV charging, and digital healthcare, LG aims to achieve $79 billion in sales by 2030. The company’s expansion into emerging sectors through strategic acquisitions and the development of innovative platforms positions LG as a key player in the evolving tech industry.

Frequently Asked Questions (FAQs) Related to the Above News

What is LG Electronics' investment plan?

LG Electronics plans to invest $39.5 billion in research and development, facility upgrades, and strategic investments.

What is the company's sales goal for 2030?

LG Electronics aims to achieve $79 billion in sales by 2030.

What areas will LG focus on as it transforms into a platform-based technology company?

LG will focus on home appliances, B2B solutions, electric vehicle (EV) charging, and digital healthcare.

Why did LG shut down its mobile phone business?

LG shut down its mobile phone business globally two years ago in order to shift its focus to key growth areas such as smart homes, connected devices, IoT, B2B solutions, electric vehicle components, robotics, artificial intelligence, and platforms.

How will LG expand its presence in the TV market?

LG plans to offer its webOS as a service platform provider, supplying it to various TV manufacturers and expanding into sectors such as digital signage and automotive displays.

What acquisitions has LG made to support its ventures in emerging sectors?

LG has made several strategic acquisitions, including ZKW, Alphonso, Cybellum, and AppleMango, to support its ventures in automotive lighting, ad tech, automotive cybersecurity, and electric vehicle charger development, respectively.

What is LG's focus in the field of digital healthcare?

LG will collaborate with its internal startup incubator, LG Nova, and establish a venture capital unit to invest in promising startups in the healthcare sector.

What was LG Electronics' projected revenue for the April to June quarter?

LG Electronics projected a revenue of 19.9 trillion won ($15.2 billion) for the April to June quarter, the highest in the company's history.

When will LG release its full earnings report?

LG is scheduled to release its full earnings report at the end of July.

What is the overall goal for LG Electronics?

LG Electronics aims to transform into a smart life solutions company that connects and expands customers' spaces and experiences while achieving revenue growth in key sectors of the tech industry.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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