In the world of consumer electronics, few brands are as instantly recognizable as Samsung and Harman Kardon. For decades, both brands have been household names, synonymous with innovative designs, high-quality products, and exceptional performance. However, with the increasingly complex landscape of corporate mergers and acquisitions, it’s natural to wonder: does Samsung own Harman Kardon? In this article, we’ll delve into the history of both companies, explore their business relationships, and provide an in-depth look at the current state of their partnership.
A Brief History Of Harman Kardon
Harman Kardon has a rich history that dates back to 1953 when it was founded by Sidney Harman and Bernard Kardon. The company’s early success was built on the development of high-fidelity audio equipment, including amplifiers, tuners, and speakers. Throughout the 1960s and 1970s, Harman Kardon became renowned for its innovative products, such as the first commercially available AM/FM tuner, the 930 tuner (1960), and the Citation II amplifier (1958). The company’s commitment to quality and innovation earned it a loyal customer base among audiophiles.
Harman’s Journey Through Acquisitions
Over the years, Harman Kardon underwent several acquisitions and mergers. In 1976, the company was acquired by Beatrice Companies, a large conglomerate. However, this partnership was short-lived, as Harman Kardon was sold to Sidney Harman in 1978. In the 1980s, Harman Kardon continued to expand its product lines, entering the consumer electronics market with the introduction of home theater systems and car audio equipment. In 1987, Harman Kardon merged with Becker Electronics, another prominent audio equipment manufacturer.
In 2011, Harman Kardon’s parent company, Harman International Industries, Inc., was acquired by KKR and GS Capital Partners, two private equity firms, for $8 billion.
The Samsung-Harman Connection
In 2016, the acquisition landscape shifted dramatically when Samsung announced that it would acquire Harman International Industries, Inc. for $8 billion. The acquisition was finalized in March 2017, and Harman Kardon became a subsidiary of Samsung Electronics. However, despite the change in ownership, Harman Kardon continues to operate independently, maintaining its brand identity and product lines.
Why Did Samsung Acquire Harman Kardon?
So, why did Samsung acquire Harman Kardon? The primary motivation behind the acquisition was to expand Samsung’s presence in the automotive electronics market. Harman Kardon had established itself as a leading provider of in-car infotainment systems and audio equipment to many major car manufacturers. By acquiring Harman Kardon, Samsung gained access to the company’s extensive network of automotive partners and its expertise in the development of complex, connected systems.
Additionally, Samsung was attracted to Harman Kardon’s brand portfolio, which includes other prominent audio brands like JBL, Infinity, and AKG. The acquisition enabled Samsung to diversify its product offerings, leveraging Harman Kardon’s expertise in audio technology to enhance its own product lines.
The Impact of the Acquisition
Since the acquisition, Harman Kardon has continued to develop innovative products, such as the Omni+ speakers, which integrate Samsung’s Bixby voice assistant. Samsung has also leveraged Harman Kardon’s expertise to improve the audio capabilities of its own products, such as its QLED smart TV line. Furthermore, the acquisition has enabled Harman Kardon to tap into Samsung’s vast resources, expanding its research and development capabilities.
Despite the acquisition, Harman Kardon has maintained its independence and continued to operate as a separate entity within Samsung. This has allowed the company to preserve its brand identity and maintain its established relationships with its automotive partners.
Key Products And Innovations From Harman Kardon
Over the years, Harman Kardon has developed numerous innovative products that have helped shape the consumer electronics industry. Some notable examples include:
- Citation II amplifier (1958): This iconic amplifier was one of the first to combine high power output with low distortion, setting a new standard for home audio equipment.
- 930 tuner (1960): This AM/FM tuner was the first commercially available product of its kind, offering improved performance and reception for radio broadcasts.
Harman Kardon has also continued to innovate in recent years, introducing new products like the Invoke smart speaker, which integrates Microsoft’s Cortana voice assistant, and the Citation Bar, a high-performance soundbar designed for home theaters.
Harman Kardon And Samsung: A Partnership For The Future
Today, Harman Kardon and Samsung continue to work together, sharing their expertise and resources to develop innovative products and solutions. As the consumer electronics landscape continues to evolve, the partnership between Harman Kardon and Samsung is poised to yield exciting new developments, particularly in the areas of automotive electronics and home audio.
In conclusion, Samsung’s acquisition of Harman Kardon in 2017 marked a significant milestone in the history of both companies. By leveraging Harman Kardon’s expertise in audio technology and its established relationships with automotive partners, Samsung has expanded its presence in the automotive electronics market and enhanced its product offerings. As the partnership between Harman Kardon and Samsung continues to evolve, one thing is clear: the future of consumer electronics is likely to be shaped by this dynamic duo.
What Is The Connection Between Samsung And Harman Kardon?
Samsung Electronics acquired Harman International in 2017 for approximately $8 billion, expanding its presence in the global automotive and audio electronics market. Harman Kardon is a subsidiary of Harman International, which is why Samsung now has a controlling stake in the high-end audio brand.
Through this acquisition, Samsung aimed to enhance its offerings in the connected technologies space, including automotive electronics, audio systems, and professional solutions. Harman Kardon’s expertise in designing and manufacturing premium audio products was seen as a valuable addition to Samsung’s existing portfolio.
Did Samsung Acquire Harman Kardon Directly?
Although Samsung acquired Harman International, the parent company of Harman Kardon, it did not directly acquire Harman Kardon. Harman Kardon operates as a subsidiary under Harman International, which was the company acquired by Samsung.
Samsung’s acquisition of Harman International was a strategic move to gain access to the company’s diverse range of brands, including Harman Kardon, JBL, AKG, and Infinity. This acquisition allowed Samsung to expand its capabilities in the audio and automotive electronics sectors while maintaining the autonomy of its subsidiaries.
How Has The Acquisition Impacted Harman Kardon?
Since Samsung’s acquisition of Harman International, Harman Kardon has continued to operate with relative autonomy, maintaining its focus on designing and manufacturing high-end audio products. The brand has retained its distinct identity and has continued to introduce innovative audio solutions to the market.
The acquisition has also led to opportunities for Harman Kardon to collaborate with Samsung on various projects, such as integrating Samsung’s technologies into Harman Kardon’s products. This collaboration has allowed Harman Kardon to stay competitive in the rapidly evolving audio technology landscape while benefiting from Samsung’s resources and expertise.
Does Samsung Control The Day-to-day Operations Of Harman Kardon?
As a subsidiary of Harman International, Harman Kardon is managed by its own leadership team, which reports to Harman International’s management. Samsung does not directly control the day-to-day operations of Harman Kardon, allowing the brand to maintain its distinct culture and independence.
This autonomy enables Harman Kardon to continue developing innovative audio products that meet the needs of its target market, while also leveraging Samsung’s resources and expertise to drive growth and innovation. Samsung’s involvement is primarily focused on providing strategic support and guidance to Harman International and its subsidiaries.
Have There Been Any Significant Changes To Harman Kardon’s Products Since The Acquisition?
While Samsung’s acquisition of Harman International has led to opportunities for collaboration, there have been no drastic changes to Harman Kardon’s product lineup. The brand has continued to focus on developing high-end audio products that meet the expectations of its discerning customers.
However, Harman Kardon has introduced new products that integrate Samsung’s technologies, such as smart speakers and soundbars with Samsung’s SmartThings platform. These collaborations have allowed Harman Kardon to stay competitive in the rapidly evolving audio technology landscape while maintaining its commitment to delivering high-quality audio products.
What Are The Benefits Of The Acquisition For Samsung?
The acquisition of Harman International has provided Samsung with a significant presence in the global automotive and audio electronics market. Harman Kardon’s expertise in designing and manufacturing premium audio products has been a valuable addition to Samsung’s existing portfolio, enabling the company to expand its capabilities in the connected technologies space.
The acquisition has also provided Samsung with access to Harman Kardon’s established customer base and distribution network, allowing the company to reach new markets and customers. This expanded reach has enabled Samsung to drive growth and revenue while enhancing its position as a leader in the global technology industry.
Will Harman Kardon Continue To Operate Independently In The Future?
As a subsidiary of Harman International, Harman Kardon is expected to continue operating with relative autonomy, maintaining its focus on designing and manufacturing high-end audio products. While Samsung may provide strategic support and guidance, Harman Kardon’s independence is likely to continue, allowing the brand to respond to the needs of its target market.
This independence is essential for Harman Kardon, as it enables the brand to maintain its distinct identity and reputation for delivering high-quality audio products. As the audio technology landscape continues to evolve, Harman Kardon’s autonomy will allow it to respond quickly and effectively to emerging trends and customer needs.