Published on : Dec 10, 2015
Samsung Electronics Co. Ltd. announced recently that they will create a team that will help them develop more business in the automotive industry. The company planned this move as a part of looking for new profit drivers in the midst of power struggles in the cutthroat smartphone industry.
In the statement, Samsung said that the team will be functioning outside of all the divisions that already exist in the company in order to boost the sales of its car components. The early focus will be on in-car entertainment, autonomous driving tech and satellite navigation.
The team might also be working in tandem with the other technology arms of the Samsung Group.
Analysts as well as investors have called on Samsung to leverage its power in the field of displays and chips to cater to the demands of the automotive industry. Carmakers are on the lookout for increasingly sophisticated technologies for modern vehicles.
At the same time, the market estimates have hinted at Samsung’s profits from smartphones to fall in 2015 for the second time in a row. If it happens, it will put immense pressure on the manufacturer to find new drivers for profits.
Data from the U.S. patents shows a growing effort by the top smartphone maker in the world and all its associated firms to push into the auto market, with hardware and software worth nearly US$500 bn.
Samsung and its affiliates, including Samsung SDI Co. Ltd., the battery maker, and Samsung Electro-Mechanics Co Ltd., the electronic components maker, can be forces to be reckoned with in the field of automotive technology.