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Samsung sees strong growth at auto electronics unit

Reuters  |  LISBON 

By Axel Bugge

(Reuters) - Electronics expects strong growth at its audio and auto electronics unit Harman, which has put the company "firmly in the picture of the automotive industry" as it eyes the autonomous market, its said.

Samsung, the world's largest manufacturer, bought last year for $8 billion.

"Now it's almost 20 months, still not two years (since the purchase), but I would say the honeymoon is over. Now we are in a business," Young Sohn, Samsung's Silicon Valley-based president and chief strategy officer, told on Tuesday during the in

Harman, known for its audio speakers, has a large automotive encompassing navigation services, and

"The company (Harman) made its numbers, in terms of revenue growth and profit. And we continue to expect double-digit growth, which I think is really good. It firmly puts in the picture of the automotive industry," he said.

He added "we are always interested in partnerships, investment, acquisitions."

As autonomous develops, Sohn said was working with automobile companies on development of 5G networks, needed for autonomous driving.

"The question is, can they do it alone?" Sohn asked about companies' ability to develop all the needed.

"They (car companies) have to navigate things like: should they adopt Android, or not? What do they do with their data? Do they give it to These are new problems they haven't seen before," he said.

He cautioned that full autonomous driving is still a while away, although on a limited scale, it could happen "very soon" in some parts of

Asked about a drop of 27 percent in Samsung's capital expenditure this year, Sohn said that reflected a calmer cycle in the market and not other areas of spending.

"So you will continue to see us invest, continue to spend, but right now the memory cycle is such that there is a bit of oversupply of NAND (memory) so we decided to slow down."

He said last year Samsung spent $46 billion, including on R&D. "If you look at any other company in IT, we spend more money than anybody," he said.

Taking part in Europe's biggest tech conference, Sohn predicted that will "disrupt everything as we know it, from publishing, all the way to travel ... and the way we serve our food," adding though that he was optimistic about AI and that it will create more jobs.

(Reporting By Axel Bugge, editing by and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 22:45 IST