LG and Samsung set To Go Head To Head In Wireless Sound Market As Both Look For Growth
Both Samsung and LG Electronics are looking to carve additional revenue out of the audio market with both Companies set to reveal new 24bit sound offerings at CES 2016.
However, it is not clear what LG has to offer up against Samsung’s new US based audio R+D operation.
Analysts claim that as audio becomes an integrated part of a home network, Companies like LG are struggling to grow TV market share as a result the Korean Company has turned to the audio attach market in an effort to grow share.
The only problem is that the LG brand which is already tarnished in Australia due to constant breach of consumer protection laws does not have the same audio pulling power as established brands such as Harman Kardon, Denon, Bose, or even Sony who also sell TV’s.
Also missing from the LG offering is any form of audio pedigree an issue that Samsung has moved to overcome by setting up a separate audio R+D centre in the USA that employs some of the best European sound experts who have been lured away from leading European and US Hi Fi Companies.
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According to sources in Korean both Samsung and LG are looking to invest heavily in iOT devices in an effort to give them a competitive edge in IoT.
It is likely that Samsung executive director Chae Ju-rak will become the team leader of the AV business team that was established during Samsung Electronics’ recent group reorganization.
Executive director Chae is an in-house audio expert that had researched and developed audio products from Samsung Electronics’ Video Display (VD) Business Departments’ Development Team. He also led development and release of ‘Wireless 360 Audio’ that was released by Samsung Electronics this year.
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LG Electronics has left Kwon Bong-seok, as the head of Home Entertainment (HE) he is also in charge of the Companies audio business.
LG executives arriving at CES 2016 have said that LG is looking for “high growth rate” products such as wireless audio product to deliver increased revenue for the struggling CE category.
‘Smart Audio’, sound bar, high-output audio products called ‘X Boom’ are all under the microscope at LG.
Samsung who also make headphones see themselves competing for market share not up against LG but Companies such as Bose, Sennheiser and others that specialise in audio products.
Samsung is also planning to turn around its strategies 180 degrees and develop and release Smart products using its competitive edge in information communication technology (ICT).
It is also sending experts to the ‘Samsung Audio Lab’, which developed the ‘Wireless 360 Audio’ platform to see if the technology can be integrated into other iOT products.
LG said that they are planning to strengthen its competitive edge in the audio market by focusing its capabilities around new Google Cast technology
According to market research company called IHS, there were 1.5 million wireless audio products sold globally in 2010 and there will be 66 million of them in 2018 after growing 88% annually.