Samsung – Back to basics.

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Launch of IoT modules returns Samsung to its roots

• Samsung has launched a range of modules aimed at Internet of Things (IoT) devices at an event in San Francisco.
• The new platform is called ARTIK and will initially consist of three modules.
  • First. ARTIK 1, a ladybird sized module with a very low power 250MhZ microprocessor from Ineda with basic motion sensors. This could have battery life of around one month.
  • Second. ARTIK 5, a 29mm x 25mm module with a 1Ghz Samsung processor and memory aimed at home hubs, drones and IP cameras.
  • Third. ARTIK 10, a 29mm square with a 1.3Ghz Samsung processor, 32GB of on board storage aimed at more advanced devices where more processing and data storage is needed.
• This is just the initial launch and I suspect that the range will be deepened as the IoT market develops and new use cases and requirements emerge.
• This launch brings Samsung into line with Intel, Broadcom and Freescale who already have products in the market but Samsung has an advantage.
• Samsung’s position in consumer electronics and white goods ensures that there will be a high volume, tier-1 customer for these modules and Samsung intends to put this in almost everything it makes.
• This is important because ensuring that there are a lot of devices in the market will mean that developers and other hardware makers will be interested in ensuring that their products work with this platform.
• Furthermore, as Samsung also makes many of the components that go into these devices, it can ensure optimal component design as well as cost effective volume manufacturing.
• These modules will be the nerve centre of the devices that use them meaning that they will automatically be part of Samsung’s cross-device strategy.
• This aims to ensure that all of Samsung’s devices can seamlessly communicate with each other thereby incentivising a user who has one Samsung device to buy another.
• Following Samsung’s exit from the ecosystem, this is one of the few avenues left open to Samsung to differentiate its hardware and achieve some degree of premium pricing and margin.
• Allowing others into this group could diminish that effect as they too will also communicate seamlessly but having many more devices as part of this group makes the proposition more appealing for users.
• I think that this will far outweigh any disadvantage from users being able to choose competing devices as it will vastly increase the number and range of devices available.
• This is a similar strategy to what Xiaomi is doing to grow its ecosystem beyond phones, phablets and TVs.
• This is exactly the area where Samsung should be competing as making things smaller, better and cheaper is what it is really good at.
• However in the short term, I still think that Samsung will struggle with earnings growth and I prefer Microsoft and Google for the ecosystem.