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| Yoon Boo-keun, president and CEO of Samsung Electronics' consumer electronics division, speaks during a press conference with Korean media after his keynote speech at the opening of this year's IFA fair in Berlin, Friday. / Courtesy of Samsung Electronics |
By Yoon Sung-won
BERLIN ― Yoon Boo-keun, president and CEO of Samsung Electronics' consumer electronics division, said smart home services will penetrate households within the next five years.
The CEO made the remark at a press conference with Korean media at the Hotel Adlon Kempinski.
He expected the segment's global value to exceed $100 billion by 2018.
"Global electronics makers are releasing a wide range of home appliances that incorporate smart home technology. We expect the market to enter a stage where customers feel comfortable about the new technology. I think that day will come within the next three to five years," Yoon said.
"The progress will take place really fast, and the key for us now is how to make customers see the technology as convenient. We anticipate that our partner, SmartThings, will play an important role in this step with its innovative and creative ideas."
Samsung Electronics acquired open-source platform developer SmartThings, headquartered in the United States, earlier this year in an effort to strengthen its technological capability in establishing a smart home service platform. The two agreed that the latter will operate as a separate enterprise in the United States.
When asked about whether consumers will be burdened with high costs to install a smart home system, Yoon said the pricing will follow the law of supply and demand.
"Technology will solve the matter of pricing. Of course, a well-established smart home system requires more advanced technologies. But the market price will naturally go down once the smart home segment as well as consumer demand expand," Yoon said.
"After that, we'll look to further improve the service to give users full control over security systems and home appliances at their homes, as a way acknowledging them and their lifestyles."
He said the company is looking at the smart home business from a long-term perspective, which includes not only its home appliances but also its mobile solutions, televisions and health care-related products.
"It's not about raising revenue in a specific business division. It's about what we are fostering as a growth engine," Yoon said. "We also plan to target all customer brackets from the premium and high-end to the more mass-oriented brackets."
European electronics powerhouses including Siemens, Bosch and Miele showcased their smart home services at the IFA, Europe's most influential electronics fair, this year.
Yoon said it was a good sign that more enterprises are jumping into the market.
"In Samsung Electronics' ecosystem, we are establishing an open platform that can connect any product made by any manufacturer," he said. "I believe it's good for both the companies and the customers in the long run."
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