Components in self driven cars with the logo of Samsung can be expected in the future as the electronics company has made a decision to enter the automotive market.
Samsung has now taken a decision to expand its business to the automotive market. Mainly due to the loss it has been facing in its smartphones sales, the company’s electronic equipment is now going to be witnessed in automated self-driven cars. The electronics giant announced of this sudden interest in innovative auto parts on Wednesday.
The Galaxy manufacturer is focusing on the automotive industry; this can turn out to be highly profitable for the business due to high demand for auto parts worldwide and the markets rapid growth. The team that is going to be selected for the department will be kept separately from the current three departments of the organization, aiming to build innovative products for self-driven cars that work with the help of the satellite imagery and the internet. It has not revealed details regarding the unit yet.
The South Korean giant is known for the creation and distribution of the best smartphones around the globe. However, it has made reports of having trouble in the sales of those smartphones. It has also made a decision to expand its units and portfolio even further.
Samsung has its eyes set on self-driven car and electric cars. It will develop products as satellite navigation, autonomous driving tech, and other entertaining equipment installed in such cars. The team, which is going to be selected for the development of such electronics, will also work on other modern technologies to enhance the cars even more for excellent customer experience.
This new future profit generator is too difficult to maintain, but the corporate giant is willing to do it to cover the loss it has predicted to face in its mobile phone business. It already has huge rivals in the business, such as Alphabet and Apple, which are constructing their very own self-driven vehicles. Other companies are also stepping into the market and Samsung needs to implement on its decision as soon as possible. It will have to make huge investments at the beginning and the profit will not come soon out of the business, it will take years.
The corporate giant has made the right decision at the right time, and an analyst, Kim-Young from SK securities agrees. Kim believes that the company needs to combine all of its operations into one for success. Kim also said, “Now that Samsung Electronics rolled up its sleeves, there needs to be a move to consolidate all the different parts in one.” The department is expected to be directed by Park Jong Hwan, who is going to be the executive vice president of the division.
Hwan’s department will eventually work with other teams in order to develop products, which are going to be used in smart cars. Samsung stock closed at $1,100.00 on November 5.
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