Samsung buys Harman for $8B in deal that could pave way for 'Apple Car' competition
Chief Apple rival Samsung Electronics on Monday announced plans to buy Harman International Industries for $8 billion, in a move that could signal its intention to compete against Apple and Google in smartcar technology.
The acquisition, Samsung's largest-ever overseas, will automatically catapult it into the highest levels of automotive tech suppliers, serving clients like BMW, GM, and Volkswagen, Bloomberg reported. Harman is also known for its audio equipment, under names like Harman Kardon and Bang & Olufsen.
Though Samsung also has a stake in Chinese electric car maker BYD, the company doesn't immediately appear poised to build a self-branded vehicle. It could conceivably use Harman to launch its own "infotainment" platform though, or take steps towards more comprehensive in-car systems.
Apple's own automotive project is believed to be at a crossroads. While the company initially set out to design a complete vehicle, various obstacles have led to job losses and a refocusing of the project on self-driving systems. It's expected to decide late next year whether it wants to resume designing its own car or simply partner with an existing automaker.
Google is typically expected to go the second route, despite having long tested self-driving prototypes. Recently it partnered with Fiat Chrysler to test self-driving Pacifica minivans, though not for any commercial endeavor.
The acquisition, Samsung's largest-ever overseas, will automatically catapult it into the highest levels of automotive tech suppliers, serving clients like BMW, GM, and Volkswagen, Bloomberg reported. Harman is also known for its audio equipment, under names like Harman Kardon and Bang & Olufsen.
Though Samsung also has a stake in Chinese electric car maker BYD, the company doesn't immediately appear poised to build a self-branded vehicle. It could conceivably use Harman to launch its own "infotainment" platform though, or take steps towards more comprehensive in-car systems.
Apple's own automotive project is believed to be at a crossroads. While the company initially set out to design a complete vehicle, various obstacles have led to job losses and a refocusing of the project on self-driving systems. It's expected to decide late next year whether it wants to resume designing its own car or simply partner with an existing automaker.
Google is typically expected to go the second route, despite having long tested self-driving prototypes. Recently it partnered with Fiat Chrysler to test self-driving Pacifica minivans, though not for any commercial endeavor.
Comments
I would suggest leaving the investing to your broker. Ever thought of looking forward? Plus the article uses the word: "could." This means possibly or a chance of. As in currently not the case but it is obvious where the big tech companies are heading in the automotive industry.
Actually, they have something like 20 audio brands including ones like AKG, Soundcraft and JBL. I don't know what their automotive business is, but I bet their audio side makes up the majority of their yearly sales (and the automobile side is probably also mostly audio as well).
Right.
As much as you wish otherwise, Beats was a good buy.
With so much cash, Apple has the ability to do some big things that nobody else can do. I think it would be much better to do a big thing that nobody else can do than to do 500 little things that many other people can do.
I know a lot of people hate this idea, but if Apple were to do a big acquisition, I'd vote Tesla. Elon Musk has ideas for very big things that actually could employ $200 billion in cash. Tesla's problem is that it's undercapitalized. Apple's problem is a lack of a big idea for inventing it's capital. They're the perfect match.
Probably just a way for Samsung to position themselves to be the biggest vendor of the infotainment center/cluster in a high demand market. After the Note 7 fiasco, they have probably realized diversification is the best path for them going forward. Particularly with the maturing smartphone market
If he used 200billion to get shares off the market and away from rank amateurs like Wall Street and you, then its money well spent.
And it's painful to watch the stock getting pounded. Yes, I know that tech is taking a hit, but Apple is getting massacred.
Samsung seems like a good fit. Harman has a dominant position in the pro and mobile audio markets, while Samsung is the leading TV and OEM LCD panel manufacturer. Harman also has a very strong position in the home audio/theater market, and the combination with Samsung could work well.
But, automotive systems is Harman's moneymaker. And they did need a partner to ensure their future competitiveness in that market.