In an enormous transfer reshaping the premium audio panorama, Samsung subsidiary Harman Worldwide acquired Masimo Company’s Sound United shopper audio enterprise for $350 million in money, the businesses stated this week — together with a number of the business’s most storied manufacturers.
The deal brings famend audio manufacturers like Bowers & Wilkins, Denon, Marantz and Polk Audio underneath Samsung’s increasing audio empire — doubtlessly creating new challenges for Apple in each the patron audio, automotive and sensible dwelling markets.
And the vendor occurs to be Apple authorized rival Masimo, whose lawsuit in opposition to the iPhone big put a cease to blood oxygen sensing in Apple Watch. Ouch.
Samsung purchases legendary audio manufacturers, cranks up competitors with Apple
The acquisition from Masimo represents Samsung’s largest buy since its $8 billion Harman deal in 2017. It comes at a very attention-grabbing time. Masimo stays locked in a contentious patent- and trade-secret disputes with Apple associated to blood oxygen monitoring expertise in Apple Watches. And the results of the comparatively thrifty $350 buy appears to be like to be Apple rival Samsung proudly owning a lot of the crown jewels of audio.
“This acquisition represents a strategic step ahead within the growth of Harman’s core audio enterprise and footprint throughout key product classes equivalent to Dwelling Audio, Headphones, Hello-fi elements and Automobile Audio,” stated Dave Rogers, president of Harman’s Life-style division, in a Masimo press launch. “This mixed household of manufacturers … will ship complementary audio merchandise, strengthen our price proposition and supply extra selections to customers.”
How the audio panorama shifts
For Apple customers invested in premium audio gear, this acquisition alerts a major realignment of name possession within the high-end audio area.
Harman, already dwelling to heavy hitters like JBL, Harman Kardon and AKG, now provides prestigious names like Bowers & Wilkins — recognized for ultra-premium audio system in addition to top-shelf headphones and earbuds — alongside Denon, Marantz, Polk Audio, Definitive Know-how and others.
The strategic acquisition positions Samsung to strengthen its choices throughout a number of audio classes that compete immediately with Apple’s ecosystem:
- Dwelling audio options that would combine with Samsung SmartThings, creating options to Apple HomeKit-compatible audio programs.
- Headphones and earbuds to problem Apple’s AirPods and Beats product strains.
- Automobile audio programs which will compete with Apple CarPlay audio experiences.
- Hello-fi elements for audiophiles in search of options to Apple’s audio ecosystem.
Implications for Apple customers
Photograph: Gemini AI
For these embedded in Apple’s ecosystem, this consolidation raises a number of concerns.
Apple customers who personal Bowers & Wilkins, Denon or different acquired model merchandise might query how these units will operate throughout the Apple ecosystem going ahead. Fast modifications are unlikely. However long-term integration methods may doubtlessly favor Samsung’s Android units and SmartThings platform over Apple units and HomeKit for brand spanking new product improvement.
The acquisition documentation explicitly mentions plans to “combine audio system and audio units with our SmartThings companies.” That implies Samsung intends to leverage these premium manufacturers to boost its related system technique — an space the place Apple invests closely with HomeKit.
The Masimo connection
And the deal provides an intriguing subplot to the continued authorized battle between Apple and Masimo. The healthcare expertise firm efficiently compelled Apple to quickly halt Apple Watch gross sales within the US over alleged patent infringement associated to blood oxygen monitoring expertise. Whereas Apple has resumed gross sales by disabling the characteristic in US fashions, the dispute stays energetic.
Masimo’s choice to promote its audio division to concentrate on healthcare expertise comes after a decide awarded Apple solely $250 (the statutory minimal) in its countersuit in opposition to the healthcare firm. Katie Szyman, Masimo’s CEO, famous the sale would assist the corporate refocus on “allocating time and sources to areas of unmet scientific want.”
For Apple, having its authorized adversary shed a significant enterprise division to a main competitor creates an uncommon aggressive dynamic. Samsung features premium audio manufacturers whereas not directly supporting an organization engaged in litigation that has compelled Apple to disable options in considered one of its flagship merchandise.
Strategic timing amid market shifts
The timing of this acquisition is especially notable, as customers more and more search premium audio experiences throughout a number of units. Apple has invested closely in Spatial Audio expertise for AirPods and HomePod merchandise. And it has developed its personal audio chips to boost integration throughout its ecosystem.
Samsung’s transfer suggests it acknowledges the strategic significance of proudly owning premium audio mental property and model loyalty because the sensible dwelling market continues to evolve. By buying these storied audio manufacturers, Samsung positions itself to compete extra successfully in opposition to Apple’s audio-focused product technique.
Trade analysts recommend the consolidation may speed up improvement of superior audio applied sciences as each firms compete for audiophile clients. They demand distinctive sound high quality alongside seamless ecosystem integration.
Samsung purchases legendary audio manufacturers: What occurs subsequent
The Harman-Sound United deal is predicted to shut by the tip of 2025, pending regulatory approval. Apple customers ought to look ahead to potential product roadmap shifts from the acquired manufacturers, notably concerning future Apple ecosystem compatibility and integration options.
For the premium audio market total, this consolidation alerts audio expertise stays an important battleground within the bigger ecosystem warfare between tech giants. As Samsung leverages these acquisitions to boost its audio credibility, Apple may have to reply with its personal audio improvements or strategic partnerships to keep up its repute for superior built-in experiences.
Whether or not this acquisition finally advantages customers by way of elevated competitors or reduces selection by way of platform-specific optimizations stays to be seen. What’s sure is that the premium audio panorama is being redrawn. Samsung now controls a powerful portfolio of legendary audio manufacturers which have lengthy been favored by discerning listeners — together with many Apple customers.
