Samsung Sandwiched between US, Chinese Companies in IoT

Samsung Electronics is likely to be sandwiched between U.S. and Chinese enterprises and to struggle in the rapidly growing Internet of Things (IoT) area as a result.

"Like in the case of smartphones, Apple and Google will dominate smart home platforms, and Chinese companies will stand out from the crowd in hardware production," said the KT Economics & Management Research Center in its recent report, according to industry sources on Aug. 9.

As for Apple, which showcased a smart home platform called Home Kit last year, the report said, "If Apple is unable to nab the top spot in the smart home market, it will be able to make huge profits from the market with a form optimized for the Apple ecosystem."

Related to Google, which acquired home gadget maker Nest Labs in 2014, it noted, "Google will offer an unparalleled service based on its cloud and big data technology."

On the other hand, the report negatively portrayed the business value of Samsung, which bought IoT platform developer Smart Things, by saying, "Any company that dominates platforms can be a dominant player in the smart home market." It added, "The industry is doubtful about Samsung's ability to successfully operate its platform business, since the tech giant has never succeeded in the field." The failure of Samsung's Bada operating system and the abandonment of its content business were mentioned in the report as well.

The report stressed, "Overall, advanced software technology is necessary to complete platforms," adding, "Companies like Apple or Google are in a more advantageous position in the market than small and mid-sized venture firms or Samsung."

When it comes to Chinese companies, it said, "Alibaba, Xiaomi, Haier, and Baidu are actively engaged in the smart home business," adding, "They are highly likely to lead mid-range and low-cost products."

The report also said, "Apparently, local companies don't have much time to search for an answer to survive and to show results amid fierce competition with Apple, Google, and Chinese firms."