Samsung Electronics is expanding its business in the global audio market a decade after acquiring Harman. The revenue from Harman, which was acquired to enter the automotive electronics sector, has more than doubled, and the company has recently secured renowned premium audio brands to strengthen its presence in the high-end market. Samsung plans to enhance its competitive edge by integrating Harman's audio technology into its flagship products like smartphones and TVs.
According to Samsung, Harman's revenue last year was 15.78 trillion won, a 122.2% increase from 7.10 trillion won in 2017, shortly after the acquisition. Operating profit reached a record 1.53 trillion won, with an operating margin of 9.7%. Since Samsung announced the acquisition for approximately $8 billion (around 9.4 trillion won) in November 2016, Harman has established itself as a key growth driver in both automotive and audio sectors.
Recently, Samsung has accelerated its expansion into the premium audio business. Last year, through Harman, Samsung acquired global audio brands such as Bowers & Wilkins (B&W), Denon, and Marantz for about $350 million. This acquisition adds to its existing portfolio of JBL, AKG, and Mark Levinson, enhancing its competitiveness in the high-end home audio market.
While JBL excels in the consumer market with Bluetooth speakers and wireless headphones, Bowers & Wilkins is known for its focus on high sound quality and design in the high-end sector. Denon and Marantz have also built a strong reputation in high-end amplifiers and home theater systems. With this acquisition, Harman has expanded its product range from portable audio devices to high-end speakers costing millions of won.
The strategy aims to secure competitiveness in the global audio market through customer segmentation. In the mass market, Samsung will leverage JBL's brand recognition, while in the premium market, it will focus on the technology and reputation of specialized audio brands to increase market share. The high-end audio market is influenced not only by sound quality but also by brand trust and technological expertise, making the acquisition of specialized brands a competitive advantage.
Collaboration with Samsung is also expected to expand. Samsung plans to integrate Harman's and Bowers & Wilkins' audio technologies into smartphones, TVs, and soundbars to enhance product competitiveness. The goal is to differentiate consumer experiences by combining specialized audio technology with mobile and video products. Since Samsung's acquisition, Harman's domestic audio revenue has increased by approximately 1.5 times.
The automotive business, a key growth driver, is also expanding. As of last year, Harman maintained its position as the global leader in vehicle digital cockpit and car audio sectors. At the end of last year, it announced plans to acquire the advanced driver assistance systems (ADAS) business from German automotive parts supplier ZF for 1.5 billion euros (about 26 trillion won). This investment aims to broaden its business scope from in-car infotainment to autonomous driving technologies.
Meanwhile, to celebrate the 10th anniversary of the Harman acquisition, JBL's 80th anniversary, and Bowers & Wilkins' 60th anniversary, Samsung will hold an exhibition titled 'Sound Legends' showcasing representative products from both brands from October 24 to 31 in Gangnam, Seoul.
* This article has been translated by AI.
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