Samsung acquires network analysis firm Zhilabs

Samsung Electronics announced its acquisition of Zhilabs, known for its Artificial Intelligence (AI) based network and service analytics, to further enhance its 5G capabilities. The acquisition lays the foundation for Samsung to foster its 5G offerings of automation and network analytics to finely tune the customer experiences in the 5G era.

AI-based automation will play a central role in the introduction of new services in the 5G era, such as industrial Internet of Things (IoT) and connected cars, as carriers will require automated solutions and network analytics beyond what was possible in previous generations. AI-based transformation can be used to analyze user traffic, classify application being used, and improve overall service quality, as such needs can no longer be addressed by existing solutions.

Samsung is looking forward to joint capabilities to create new cutting-edge technology in the transformation from 4G to 5G. In addition to the acquisition, Samsung will continue to strengthen its automation solutions that measure the quality of each user service and can also automatically optimize service quality without human intervention. The company will also explore and invest in other business opportunities powered by the emerging technologies.

In August, Samsung announced plans to boost investments in businesses that will drive its future growth, committing to a KRW 25 trillion investment over the next three years in the areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals.

Samsung to acquire Harman

Samsung is increasing its focus on the connected car after the Korean firm plans to buy auto and audio product maker Harman in an all cash deal worth $8 Billion. Samsung lags Google and Apple on in-car entertainment and software systems (Android Auto and Apple CarPlay, respectively) so this deal will give it the kind of reach that could allow it to compete more evenly with its rivals inside the car.

You may best associate the name with audio equipment, but Harman is big on cars, too. The acquisition is Samsung’s largest to date and a big deal for its automotive ambitions. Around 65 percent of Harman’s sales — which totaled $7 billion over the last year — were for car-related products. Samsung added that Harman products, which included connected car devices and audio systems, are installed in an estimated 30 million vehicles worldwide.

With Google rapidly advancing its automotive technology and Apple reportedly developing an electic vehicle (or not), it is perhaps not surprising that Samsung has made ground on automotive itself in 2016. This summer, it invested $450 Million into China based electric Car maker BYD, which includes Warren Buffett’s Berkshire Hathaway Inc. among its investor base. Other Reports suggested that the Korean giant was also eyeing up a bid for Magneti Marelli, a manufacturing subsidiary of Fiat Chrysler.

This investment will go beyond automotive, though, according to Samsung. The firm said it plans to marry its own electronics division and expertise with that of Harman for audio — both on the consumer and professional side of business — and connected devices, aka the internet of things, or IOT for short.

Cognizant acquires Idea Couture

Cognizant had acquired Idea Couture, a privately held firm that offers a broad range of digital innovation, strategy, design and technology services. Based in Toronto, and with offices in Europe, US and Latin America, the firm has more than 170 social scientists, strategists, anthropologists, user experience experts, designers and connected product developers who serve leading companies across multiple industries including Samsung, PepsiCo, Cox, Citi Ventures, Kroger, ConAgra Foods and others.

New generation of digital technologies, including artificial intelligence, mobility, business analytics, cloud services and the Internet of Things are disrupting every industry. Enterprises are looking to understand and apply these next generation technologies to front office customer experience, middle office business process and back office IT Systems, reshaping how they interact with customers, employees, partners and others in the digital economy.

Idea Couture will become a part of Cognizant digital works, specializes in designing and prototyping products, services and business models that take advantage of the latest technologies. To help clients succeed in this new economy, Cognizant digital works brings together human insight, strategy, design, technology and industry expertise to create innovative solutions at enterprise scale.

Fitbit enters Indian Market

Fitbit has formally entered the Indian Market by launching its complete range of fitness bands both online and offline and is aiming to become the No. 1 player in local market in the near future. The company expects India to be among its top 5 markets in next couple of years. The Indian market is currently led by Chinese company Xiaomi with its Mi Band.

Founded by James Park and Eric Friedman in 2007, San Francisco based Fitbit claims to lead the US Fitness tracker market with an 85 percent share as of March 2015, up from 67 percent a year earlier. Its revenue more than tripled from a year earlier in the quarter through March 2015. Fitbit product can be synchronized with more than 200 smartphones running on iOS, Android and Windows operating systems, as well as Apple Mac OS.

In India, the market of wearable is embryonic, selling a handful of products like smart watches and fitness brands launched by handset makers such as Samsung, Sony, Motorola, and Alcatel One touch. The fitness band segment has lately seen some action with players like Xiaomi, Micromax, Goqii making their products available at competitive price points. Fitbit too soft launched its bands in June, offering them on Amazon India.

The company will now offer its products through partnerships with Reliance Digital, Croma and Helios, which sell Fitbit seven products. There are several cheaper products available in Indian Market from rival companies. Sales of wearable devices such as smart watches and fitness bands in India totaled one lakh units in 2014 and are expected to grow to a million in 2015. Indian market reached three lakh units by the end of the second quarter of 2015. 

Hike Messenger acquires Zip Phone

Hike, the instant messaging (IM) app service from BSB (Bharti Softbank, a joint venture between Bharti Group and Japan’s Softbank), has acquired free voice calling app Zip phone from US based Thought Mechanics Inc for an undisclosed sum. This would also compete with Bharti Airtel own core mobile service. Hike is also competing with SMS service provided by Airtel among other cellular service providers. The venture, however, adds data service earnings to all mobile operators.

The move is expected to expand Hike’s product range in the Internet based communication space. This is the first acquisition by Hike, and is aimed at expanding its products range in the Internet based communication space. Launched by Anuj Jain, Zip Phone is a voice-calling app that can automatically detect one’s contacts, and intelligently routes the call through the Wi-Fi.

Founded by in July 2012 by Kavin Bharti, Hike is a peer-to-peer (P2P) messaging app that uses both data and SMS to deliver messages. Hike is one of the leading mobile apps based out of India with around 35 Million users. Close to 90 percent of its users are Indians aged below 25 years. One of the key features of Hike is that those who do not have Hike on their phones can still receive an Instant message as SMS. One can also respond to it but have to pay normal SMS charges for that.

 Hike is competing with a slew of IM apps that include Whatsapp, which claims to have around 70 Million users in India, besides Facebook Messenger, Viber, Google Talk, and Kakao talk from South Korea, Taiwan Cubie, and LoveByte from Singapore, China WeChat, Japan Line, and Nimbuzz in India. Smartphone makers have their own apps too, such as BlackBerry Ltd Messenger, Apple Inc iMessage, and Samsung Electronics ChatOn. Last September, Hike had secured $65 Million (Rs 400 cr) in funding from a group of overseas investors led by Tiger Global Management. 

Lenovo acquired Motorola from Google

In January this year, Lenovo announced it was going to buy Motorola Mobility business this year from Google. Now this deal is signed, Lenovo acquired Motorola from Google in $2.91 Billion. While Motorola is now a Lenovo Company, the brand will remain a subsidiary based out of Chicago. Google bought Motorola in 2012 for $12.5 Billion, at the time stating that it was interested in its patent portfolio. Now, Google maintains most of the patents and passes on the handset business to Lenovo.

Motorola Mobility, a Google company, creates mobile devices and wireless accessories that simplify, connect and enrich people lives. The acquisition of such an iconic brand, innovate product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones. This deal made Lenovo the world’s third bestselling smartphone maker after Apple and Samsung.

Lenovo is the world’s bestselling PC maker, a position it attained after the takeover of IBM’s personal computer business in 2005. Its smartphones are already selling in Asia and the Middle East, but they have not been sold in North America and Western Europe. Lenovo and Motorola together form the third largest smartphone player worldwide, pushing rival Xiaomi from the No 3 position to No 4, according to date from IDC.

IDC worldwide smartphone data showed Samsung leading with 23.8%, followed by Apple with 12%, Xiaomi with 5.3%, and Lenovo following closely with 5.2%, and LG with 5.1%. Lenovo has a very good business in India through the offline channel and Motorola is present only on line. Since its resurrection early this year, Motorola has sold more than two million smartphones, including the Moto G, Moto X, and Moto E. The Motorola-Lenovo combine intends to sell about 100 Million smartphones and tablets globally by the end of march next year, while Lenovo aims to bring Motorola back to profitability within four to six quarters.

Motorola will operate their Motorola solutions as a separate business and is not a part of acquisitions. Motorola business formally split in 2011.

Micromax becomes India's mobile top seller

Micromax is an Indian Consumer Electronics Company headquartered in Gurgaon, Haryana, India. It is the business of Mobile Telephones, Tablet Computers, 3G Data cards, and LED Televisions. Micromax started as the IT software company in 2000 and worked on embedded platforms. It entered in Mobile handset business and became one of the largest Indian Domestic Mobile handset company operating in low feature phone segments.

In recent news, Micromax has overtaken Samsung as India’s leading handset vendor, capturing 16.6 percent market in April-June Period. In the previous quarter, Samsung had led the overall market with 16.3 per cent share followed by Micromax 13 percent. In the Q2 period, Nokia and Karbonn shared also rise with 10.9 percent and 9.5 percent. The overall mobile phone market grew a modest 2 percent annually, while the smartphone segment grew 68 percent. Samsung is at second place in Q2 with 14.4 percent market coverage.

Micromax is leveraging its wider distribution reach, growing brand awareness not only in Urban India but also in Rural India with affordable low-costs handsets. Rural India customer is very price sensitive, so Micromax is building strength in Rural India. This company use chipsets made by MediaTek, which tend to be cheaper than those made by industry leader Qualcomm Inc. Local Indian mobile phone manufacturers had about 32 percent of the domestic market. India ranks behind China and United States in smartphone sales, with up to 90 million smartphones expected to be sold there this year.

However, these brands will have to work hard on their brand awareness, distribution, and service network to continue the growth beyond the early spike in demand in this very important mobile phone market. With competitor like Flipkart, Apple, Karbonn, Celkon, Nokia, Sony, and Motorola, Samsung and Micromax will have to change their strategies to be the top market leader.