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No, Apple Probably Should Not Have Bought Harman

Larry Dignan, in a piece titled “Why Samsung’s Harman Purchase Will Be Seen as Apple Blunder Decades From Now”:

Samsung’s purchase of Harman is strategically sound, worth the $8 billion, and positions Samsung well in the connected car market. Meanwhile, Samsung diversifies from a saturated smartphone market.

The deal makes so much sense you have to wonder why Apple didn’t buy Harman.

There has been an argument floated for months if not years that Apple should use some of its cash to acquire Harman. The crux of the case, outlined by Jim Cramer repeatedly, is that Apple could diversify and become the hub of the connected car.

I disagree. Arguing that Apple should have bought Harman is arguing that Apple should evolve into a conglomerate. It might make perfect sense for Samsung, because Samsung is a conglomerate — a company that makes everything from washing machines to refrigerators. They used to make construction vehicles. Samsung makes phones because there is money to be made making phones. Apple makes the iPhone because they love making personal computers.

Tuesday, 15 November 2016