On the 4th, Meritz Securities interpreted Hyundai Motor Group's recent decision to oust President Song Chang-hyun as a strategic choice based on the judgment that strengthening collaboration with Nvidia, rather than independently developing a smart car, would narrow the gap with Tesla more quickly.
Kim Jun-sung, a Meritz Securities researcher, said, "Hyundai Motor Group's pivot toward expanding cooperation with Nvidia rather than developing its own technology is a trend similar to the strategic shift Samsung Electronics showed after the iPhone was released in Korea in 2009," adding, "As with the case where Samsung Electronics raised its market share by focusing on the Android-based Galaxy series after the failure of Omnia, the key for Hyundai's choice is speed."
Earlier, after launching the Galaxy series in 2010, Samsung Electronics scrapped its proprietary smartphone OS "Bada" midway and focused on cooperation with Google. As a result, it expanded its share in the mobile market, and its stock price broke out of a roughly four-year stagnation that began with the release of the iPhone 3GS and entered a long-term upward cycle.
Kim said, "What now matters for judging Hyundai Motor Group's stock price is confirmation of speed," adding, "Samsung Electronics rolled out Android smartphones quickly. We expect decisions to flesh out cooperation with Nvidia to become the 'next Samsung' next year and to accelerate the existing smart car launch timeline."