The audio business strategies of Samsung Electronics and LG Electronics are drawing public attention. Home and portable products are the same in that both of them make sound for you to hear, but the divisions in charge and business strategies are different. That’s why there are ‘two houses under one roof.’ Their approaches are different than those of overseas companies having an integrated approach.
According to industry insiders on February 4, LGE’s bluetooth headset ‘Tone Plus’ saw its monthly sales go up by more than 300% as compared to 2012 when the first model was released, and is faring well. It is attributed to the fact that LGE paid attention to quality, e.g. audio technology collaboration with US-based Harman Kardon.
However, this product was developed by the MC (Mobile Communications) Company, not the HE (Home Entertainment) Company in charge of audios and home theaters. LGE integrated the wearable business into the MC Company last year, and Tone Plus was regarded as a wearable accessory ‘around the neck.’ “The headset is often used with mobile devices like smartphones,” said an LGE insider. “All audio products related to mobile devices, such as earphones, are supervised by the MC Company.”
The IT & Mobile Communications (IM) Division was in charge of the speaker, earphone and headset product group ‘Level’ and the bluetooth headset ‘Gear Circle’ that SEC released last year. On the other hand, the egg-shaped non-directional speakers, scheduled to be released in the first quarter, were developed by the Visual Display (VD) Business Division of the Consumer Electronics (CE) Division. SEC classified its products the same way as LGE did.
The business directions of the two companies are thought to be the right choice for the domestic business environment where mobile devices and TVs are the strengths. Audio, perceived as the complementary business for the two businesses (mobile devices and TVs), can contribute to leading the main businesses. As a matter of fact, the dedicated audio guidance app ‘BT Leader Plus,’ developed by LGE independently, is said to have contributed to the sales growth of Tone Plus as the ‘Ka Talk text-to-speech function.’
However, some point out that business integration must be considered for long-term reinforcement of the audio business. To be competitive as a single audio brand, consistent technology and marketing are necessary. In Japan’s Sony, the Home Entertainment & Sound Division is in charge of all audio products, such as the sound bars, headsets and home theaters, whereas Panasonic integrated the audio business into the Appliance Division. US-based Bose is also operating its audio business integratively without any distinction between divisions.