Why did Samsung buy Harman for USD8 billion?
Samsung has no intention to build a car, instead Samsung wants to marry its consumer electronics expertise and the fast 5G cellular network it’s developing with Harman’s presence in dashboards all over the world. If it works, Samsung can offer carmakers a lightning-quick connected system for infotainment, mapping, concierge services and autonomous driving and all without the worry that the automakers would be helping a future competitor.
Samsung wants to become a high-tech supplier capable of building connected systems. Its expertise is making the hardware, like microprocessing units, and a faster 5G network to deliver more data to cars faster. Harman sells among other technologies 3D navigation, apps for integrating other devices into the car, active safety systems and audio systems that can access the cloud.
There are a lot of opportunities once the companies combine. Imagine a car that that can read a driver’s daily schedule and automatically dial into a conference call. Autonomous driving will only give drivers access to more connected capabilities for work or entertainment.
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