Samsung Predicts Tech Will Next Transform the Home: WSJ D.Live -- Update
18 October 2017 - 11:26AM
Dow Jones News
By Tripp Mickle
LAGUNA BEACH, Calif. -- Samsung Electronics Co. is betting that
the next domain to be transformed by technology will be the home,
and it is increasingly investing in artificial intelligence and
software startups to stitch together a network of smart
appliances.
"We think this could be the third wave where you have
programmable objects blanketing your home," said David Eun,
president of Samsung NEXT, Samsung's investment group, during an
interview at The Wall Street Journal's WSJ D. Live technology
conference.
Companies across tech have been rushing to launch products and
software for the so-called smart home. Amazon.com Inc.'s Alexa and
Alphabet Inc.'s Google Assistant have made it possible to embed
artificial intelligence in everyday home devices, letting people
unlock doors and dim lights with their voices. Those companies and
Apple Inc. are launching smart speakers, as well.
Samsung has an inherent hardware advantage in this arena because
it sells an array of appliances. Mr. Eun said the company's
recently launched digital assistant, Bixby, would likely play a
role in Samsung's push into the home, becoming a gateway for not
only its Galaxy smartphones but also TVs, refrigerators and other
products.
"We think about it as a service that can connect and be
accessible through all the devices in your home," Mr. Eun said.
Created in 2013, the Samsung NEXT investment fund is at the
forefront of Samsung's effort to build a software platform that can
work across hardware products from Galaxy smartphones to
refrigerators. It has invested in 60 startups working on the
Internet of Things, augmented reality and artificial
intelligence.
The venture is unusual for Samsung. The company didn't have a
record of investing or acquiring software companies before hiring
Mr. Eun. Indeed, it has faced criticism for allegedly borrowing
technology from rivals. Apple Inc. sued Samsung over patent
infringement in 2011, accusing it of ripping off the iPhone's
design. The U.S. lawsuit remains unresolved.
Though Samsung invests more than $13 billion into research and
development annually, Mr. Eun said Samsung NEXT is helping the
company identify new software before the company adopts it. He
pointed to an investment in a virtual-reality startup as an
example, noting that the stake was taken two to three years before
Samsung developed its own virtual-reality headset.
"What you need in the future to continue to grow and thrive as a
company is thoughtful integration" of hardware and software, Mr.
Eun said.
Mr. Eun said that Samsung had bounced back from the faulty
battery issue that caused it to pull its Galaxy Note 7 devices from
the market last year. He said that the recent launch of the Note 8
in New York City "was an affirmation for the company that you can't
take anything for granted."
Though the company is on track to deliver record profits this
year, it has been beset by leadership questions. Samsung
Electronics Vice Chairman Lee Jae-yong was convicted of bribery
earlier this year.
Mr. Lee is "the visionary who really was driving the
transformational change of the company," Mr. Eun said.
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
October 17, 2017 20:11 ET (00:11 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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