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| An attendee photographs a sign next to the CES logo, ahead of the first keynote address at the 2020 Consumer Electronics Show (CES) in Las Vegas. AFP-Yonhap |
By Kim Yoo-chul
Thanks to the absence of global tech giants at the upcoming Consumer Electronics Show (CES), Korea's Samsung Electronics is set to appeal to global investors about why its recent decision to merge its mobile phone and home appliance businesses matters from an investment standpoint.
The backdrop is that Samsung recently announced the creation of its DX (Device eXperience) Division, as a reflection of the company's priority of catering to consumers with a variety of electronics, which is how Samsung will highlight the physical hub in its smart home ecosystem.
Samsung has long been known as the global leader in memory chips, displays and televisions. While the company has been consistent in honing its strengths in home appliances such as washing machines, refrigerators and even vacuum cleaners, its efforts in the creation of an in-house physical hub might have had tepid effects on its brand awareness.
The central point of a smart home ecosystem is having an in-house physical hub, which functions as the core for all connected products within a household. A hub allows consumers and users to control all connected Internet of Things (IoT) devices from a central point. Users simply install an app in their mobile device, which boosts the user experience with its customized features, enhanced accessibility and even convenience.
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| The Apple logo is seen in the lobby of New York City's flagship Apple store. Reuters-Yonhap |
"Unlike Google and Apple, Samsung still needs to address some necessary issues for easier use of the app. At this year's CES, Samsung will highlight why its enhanced SmartThings smart home matters for consumers and how the firm's partnerships with Google and Amazon can be a differentiating factor," an official at Samsung's top-tier Korean partner company said.
"Samsung knows Apple is probably struggling in home appliances, as Apple was quite behind its chief rivals ― Amazon and Google, both of which are Samsung's tech partners ― in their lineups of home-related devices. Simply, the home appliances market is just rising and Apple can't afford to lose out, while Samsung has some advantages, given its expanded product lineup."
At the time of its announcement to launch the DX Division, Samsung said that the new team was tasked with satisfying the growing needs of a wide range of its existing gadgets ― from televisions, mobile phones and network equipment to home appliances.
Gary Shapiro, the president of the Consumer Technology Association (CTA), which organizes the CES being held next month in Las Vegas, said that Samsung's DX Division chief and Vice Chairman Han Jong-hee will tell participants how a greener world can be reimagined through technology during his planned keynote speech. Samsung Electronics is also set to present how customized and connected experiences can enrich people's lives.
Accessories
The company also plans to place a heavy focus on the details of its accessories, as the merger of the two business units is a reflection of its increased awareness of the significance of its product ecosystem.
Officials and industry watchers stressed that because of Apple's success in establishing a gadget ecosystem that relies on being everywhere its customers are, Samsung plans to use CES 2022 as a chance to highlight its moves to strengthen its lineup in backup accessories.
Like Apple, which is has iMacs, iPads, MacBooks, Apple Watches, iPhones, TVs and AirPods, Samsung also has PCs, tablets, watches, phones, TVs and earphones. "The sure thing is that Samsung is hoping to gain support for more types of backup accessories. Specifically, it has keen interest in the connected speaker market and it aims to create a do-it-all smart home system to lock in consumers," said an executive at another one of Samsung's local partner companies.
The executive said that competing just with single pieces of hardware for a market share "does not make any sense," and that moving in the direction of home-focused appliance products is just the beginning of a "real presence" in today's trends of immersive and converging technologies.
"Don't underestimate the significance of accessories, as they normally act as a hidden factor in terms of strengthening and maintaining a company's brand awareness. Plus, if more consumers buy Samsung accessories, then that will help Samsung retain them within its product ecosystem, and the company will make consumers more loyal," the executive said.
Today's smart home products aren't pricey and the cost isn't as much of a challenging factor. Still, Apple products cost the most due to their limited compatibility and proprietary conditions. "But the launch of the DX Division means that Samsung is ready to challenge Apple's leadership, and more details regarding its home-focused businesses will come at next year's CES."
