Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Audio firm Harman aims for sales boost, new deals after Samsung takeover

Published 01/09/2017, 19:40
Updated 01/09/2017, 19:50
© Reuters. FILE PHOTO - The logo of Samsung Electronics is seen at its office building in Seoul
MSFT
-
GOOGL
-
AMZN
-
0593xq
-
005930
-
GOOG
-

By Douglas Busvine and Eric Auchard

BERLIN (Reuters) - Audio specialist Harman International wants to nearly treble annual sales by 2025 by partnering with tech groups such as Amazon (O:AMZN), Google (O:GOOGL) and Microsoft (O:MSFT), as well as its new owner, Samsung (KS:005930), its chief executive said on Friday.

CEO Dinesh Palliwal, in an interview at the IFA consumer electronics fair, said he had set an internal goal to make Harman a $20 billion (15.44 billion pounds) business within eight years, up from around $7.3 billion currently, through a mix of internal growth and bolt-on deals.

He declined to name specific targets but said that acquisitions could come in the fields of artificial intelligence, voice recognition, machine learning and the internet of things.

The aim is to expand the three parts of its business: consumer and professional audio products, along with its biggest operation, automotive audio and parts supply.

Six months after Harman was acquired for $8 billion by Samsung Electronics (LON:0593xq) - the largest overseas deal ever for the South Korean group - Palliwal said his firm would retain a distinct strategy and a strong measure of independence from the parent.

This week Harman introduced in Berlin new audio speakers that talk to Google (O:GOOGL) Home and Amazon (O:AMZN) Alexa, the top voice-controlled digital assistants on the market. Harman is also demonstrating speakers that can be run by voice commands from Microsoft's (O:MSFT) forthcoming Cortana assistant that are set to be released later this year.

"What is the long-term strategy? To continue to be agnostic; to provide excellent product," Palliwal said. "People want choice and they do not want to sacrifice the quality of sound. This is where Harman comes in."

Such voice-activated products – which can steer music systems, dim the lights, tell jokes or activate a security system – hook up their owners to the so-called internet of things without them having to type instructions on a smartphone or a computer keyboard.

© Reuters. FILE PHOTO - The logo of Samsung Electronics is seen at its office building in Seoul

Harman is also working to provide Samsung’s digital assistant, Bixby, with "the world’s best, enabled, smart, intelligent speaker," Palliwal said, "but it won’t replace the others," he said, referring to working with rivals such as Amazon, Google and Microsoft.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.