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.
