NFC Times Exclusive Insight – Apple Pay is proving to be a tough act to follow for NXP Semiconductors, with the Netherlands-based chip maker projecting lower sales next quarter for the business unit that includes its NFC chips, as part of an overall revenue decline for the vendor, which NXP largely blames on the Chinese market.
CEO Richard Clemmer has warned in the past that NXP needs Chinese handset makers to gear up to enable NFC mobile payments and transit ticketing in mobile wallets in order for NXP to sustain the big sales growth in its NFC technology it has seen over the past year from its contracts to supply NFC technology for Apple Pay.
The Chinese sales aren’t happening yet, with business in the doldrums from China in general in several of the markets NXP serves. Specifically for NFC, with Apple Pay not yet launched in China, Chinese OEMs aren’t yet feeling pressure to compete with Apple on mobile payments. So most aren’t yet willing to make the investment in the technology.