Samsung to buy Harman International in an $8 billion bet on cars

Samsung, the South Korean electronics giant — which already makes popular but recently problem-plagued smartphones — said Monday that it had agreed to buy Harman International Industries, a U.S. automotive technology company, in an ambitious push into a whole different kind of mobile.

[...] Harman’s appeal to Samsung comes from what it calls its connected car business — an operation that supplies a car’s navigation services, its onboard entertainment systems and its connectivity to the rest of the world.

“The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade,” Young Sohn, president and chief strategy officer of Samsung Electronics, said in a news release.

Under this vision, everything from home security systems to refrigerators will be connected to the Internet, gathering data and controllable at the touch of a smartphone icon.

Last month, U.S. chipmaker Qualcomm agreed to acquire NXP Semiconductors for $38.5 billion, which would give it a presence in the market for making a new generation of chips for smart cars.

Apple and Google have expressed interest in developing cars, while traditional automotive suppliers have also looked to move up the value chain.

[...] the company has faced difficulties selling its own branded phones, including a drop in market share, as Apple captured more of the high end and a new generation of low-cost Chinese manufacturers increased pressure on the bottom.