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Old 16th November 2016, 11:58   #16
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Default Re: Samsung to buy Harman!

Harman is primarily is audio with all it's uses in automobiles, homes and maybe even mobiles. The next big market in the US and developed countries might be in the home looking at Google and Amazon's entry into this space alongwith use of Artificial Intelligence to improve the customer value. The car market is growing in India and China. It is an important growth market but I feel it is not as large as the home market where one could think of billions of sales of cell phones as against millions of car sales.
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Old 16th November 2016, 12:53   #17
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Default Re: Samsung to buy Harman!

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Originally Posted by cooldude1988765 View Post
Will Samsung also take over these subsidiaries (if the deal does go through) or is it only the Harman car entertainment division ? List of subsidiaries owned by Harman International
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What about the IT services companies Harman acquired not too long ago - Symphony, Teleca, Aditi Technologies, et all ? Are these also part of the deal ?
The "Samsung - Harman" deal includes everything in Harman's portfolio.

This is not the first time audio companies have been bought and sold and traded. The usual process is such: The Primary owner/promoter dies or gets pushed out by the board. The Board however does not have the passion to run the business as the audio business is driven mostly by passion. They then sell the company to "investors" who in turn perform a series of M&A activities and package companies for trade. And the brands and the image and weight they initially carried are lost.

Samsung has now bought Harman. There are parts of Harman's business that may fit well with Samsung philosophy and there are parts which will not. My guess is Samsung will absorb those parts (essentially portable, automotive, software) and will hive off the others (high end audio, pro audio, etc.) if it can find buyers for this. For example I don't see how a man like Kevin Voecks will work with a 'chaebol' like Samsung. In Harman, thanks to Sidney's patronage he was largely left alone to run Revel (the only organic brand in Harman's sable other than Harman-Kardon) the way he saw fit.

My take is expect the following brands to get hived off over the next few years: AKG, AMX, Crown, dbx, DigiTech, HardWire, Mark Levinson Home Audio, Martin, Revel, Selenium, Soundcraft and Studer. Samsung may even package DigiTech & HardWire into one deal and Selenium, Soundcraft and Studer into another.

Obviously there will some financial jugglery and window dressing done to these brands before their divesture.

The core Harman brands, their software acquisitions, etc will fit into Samsung's product line. There may be some minor pieces like JBL Pro Audio that will be traded off. The long and short of it is that we may never see products like the Citation series of Amplifiers or The JBL Everest and K2 (BTW Dinesh Paliwal the CEO of Harman has a pair of Everest at his home) or Infinity's IRS series of loudspeakers, etc. Ce la Vie.
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Old 16th November 2016, 14:08   #18
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Default Re: Samsung to buy Harman!

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Originally Posted by navin View Post
The "Samsung - Harman" deal
I see good synergy in this deal and i am skeptical if they will trade audio part (irrespective of high/low end) since Samsung is has visual part to complement and can explore building much premium products.

However, I do see a possibility that they might renounce the software services part of Harman (while retaining any core capabilities that aligns with core business).
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Old 16th November 2016, 18:46   #19
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Default Re: Samsung to buy Harman!

Self Combusting Speakers anyone?

ha ha!

Jokes apart, I guess the Koreans can do with the infusion of high quality sound technology to improve their overall offerings in the space! Imagine all their TVs and Phones and all the rest of the stuff having Harman Kardon Tech in their speakers.

It will be a great thing from a consumer point of view!
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Old 7th December 2016, 15:44   #20
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Default Re: Samsung to buy Harman!

Harman's first bet after Samsung deal is car dashboard projector!

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Harman International Industries Inc. invested in a startup that makes projection displays that sit in front of car windshields, signalling a new area it plans to explore under the ownership of Samsung Electronics Co.
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Old 7th December 2016, 19:07   #21
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Default Re: Samsung to buy Harman!

Considering the general neutral/positive perception that Harman has in the automotive industry/consumers and the not-good-at-all perception that Samsung has due to the Note 7 debacle (not to add exploding washing machines, anyone?), I wonder if it was a good move to sell the company to Samsung.

Why not approach Apple? They are already invested big time in pioneering audio technologies in the smartphone business, and also planning to enter the automotive industry. That could have been one of the better choices.

The way Samsung managed the Note 7 saga just makes my blood boil (as an engineer by profession).
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Old 7th December 2016, 22:23   #22
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Default Re: Samsung to buy Harman!

I think Apple still need to figure out there strategy outside I Phone, as of now they are not showing any vision beyond there comfort zones - all we hear is only rumours, what they are doing is to sell more services for the overpriced I Phones - the Beats acquisition was also on the same line. Also we have not seen any new Beats product from apple so far, they might as well kill the brand.

Samsung is a great company to take risks and they are going in areas like VR, AI etc, at least they are showing interest. Look at the way the S7 and Note 7 design have evolved. While I understand the battery fiasco was bad, it could happen to anyone as battery tech still needs to improve more, and is a lesson learnt for all in industry. Look at there acquisition in mobile payment space and the wonders Samsung Pay is doing. All there products including Gear smart watches have been a game changer.

I expect them to bounce back with S8 and even cooler things and innovation in automotive field as well !!

PS: I don't work for either of the companies, these are just my observation as a consumer who owns both of there products and being absolutely fascinated with the changes in technology in past 15 years !!
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