Harman International Finance

Harman International Industries, now a wholly-owned subsidiary of Samsung Electronics, operates as a prominent player in the connected car, lifestyle audio, professional audio and connected services markets. While the company itself no longer reports standalone financial results following its acquisition by Samsung in 2017, understanding the financial implications of Harman’s operations within the Samsung ecosystem and its historical financial performance remains relevant.

Prior to the acquisition, Harman’s financial strength was characterized by consistent revenue growth driven by strong demand for its branded audio products and its expanding presence in the automotive market. The company’s diversified portfolio of brands, including JBL, Harman Kardon, AKG, Infinity, and Revel, commanded significant market share in both consumer and professional audio segments. The automotive division benefitted from partnerships with major automakers, integrating Harman’s infotainment, audio, and connected car technologies into vehicle platforms.

Harman’s financial strategy emphasized innovation and strategic acquisitions. The company consistently invested in research and development to maintain its technological edge and introduce new products. Simultaneously, acquisitions, such as the purchase of Symphony Teleca (now known as Harman Connected Services), broadened its capabilities in software engineering, cloud services, and data analytics, contributing to its connected car offerings. This approach enabled Harman to diversify its revenue streams and reduce reliance on traditional audio hardware.

Gross margins were generally healthy, supported by premium branding and efficient supply chain management. However, operating expenses, particularly those related to research and development and sales and marketing, were substantial. Maintaining a global footprint and investing in brand building required significant resources. This resulted in moderate operating margins, reflecting the competitive landscape and the need to constantly innovate.

Since being acquired by Samsung, Harman’s financial performance is embedded within Samsung’s broader financial reporting. Its contribution is reflected in Samsung’s consumer electronics and automotive business segments. While specific figures are not publicly available, industry analysts estimate that Harman’s operations continue to significantly contribute to Samsung’s revenue, particularly in the automotive sector, where the demand for connected car technologies is surging. Samsung has leveraged Harman’s expertise to enhance its own product offerings, creating synergies between its consumer electronics and automotive divisions.

The acquisition by Samsung provided Harman with access to greater financial resources, allowing for accelerated investment in research and development and expansion into new markets. While Harman no longer operates as an independent, publicly traded entity, its historical financial performance provides valuable insight into its market position and its continued importance as a key driver of innovation and growth within the Samsung ecosystem. The integration of Harman’s technologies and expertise is expected to play a crucial role in Samsung’s long-term strategy, especially in the rapidly evolving automotive and connected devices markets.