Samsung to join the race towards connected cars
Samsung Electronics is set to acquire Harman International Industries in its push to get involved with connected vehicles.
Samsung considers this move a priority, as many other businesses in the technology and automotive sectors have made headway in the industry. This deal is Samsung’s biggest overseas purchase and help it to make its name in the realm of internet-connected cars.
Samsung has struggled in recent months with the discontinuation of the ill-fated Galaxy Note 7, but it is clearly pinning hopes on this $8 billion deal to ensure its recovery. While smartphones remain the company’s biggest source of revenue, it is searching for other kinds of product development on which to focus.
Gartner has forecast that one in five vehicles will have a wireless network connection of some description by 2020, so Samsung must work quickly with its new acquisition in order to catch up with big players. Young Sohn, President and CSO of Samsung, said in a statement:
“The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade.”
Harman’s connectivity products are used in over 30 million vehicles worldwide, and the deal should be finalised in the middle of next year.