NXP CEO Casts More Doubt on Prospects for NFC IPhone in 2011

NXP Semiconductors CEO Richard Clemmer said he would be “surprised” if the next iPhone supports Near Field Communication–the most important source yet to express doubts that Apple will adopt NFC this year.

An NXP spokesman today confirmed to NFC Times that Clemmer made the statement at the Reuters Global Technology Summit held late last week. A little-noticed comment was buried in a story by Reuters.

Most people in the industry agree that Netherlands-based NXP is currently the largest supplier of NFC chips to the market and would be the likely supplier of chips to Apple if it chose to adopt NFC.

“I’d be surprised if Apple's iPhone 5 has NFC,” Clemmer said, according to the NXP spokesman. The NXP chief executive added in response to a question that he believes the iPhone 6, or whatever nomenclature Apple chooses for its next iPhone versions, will come out next spring.

He did not say whether he thought next year’s iPhone would support NFC, but many in the industry believe that if Apple does not adopt NFC for its 2011 iPhone, expected to be released this summer or fall, that it would incorporate the technology in the following version. Apple will probably make its NFC intentions known for this year at its Worldwide Developers Conference, scheduled for next month.

The only other chip supplier that is shipping NFC chips in volume, France-based Inside Secure, is unlikely to be supplying Apple, said sources.

Doubts have been growing that Apple is ready to incorporate NFC in its devices. As NFC Times reported earlier, some analysts, after talking to industry suppliers and other industry sources, did not include an NFC-enabled iPhone in their projections of NFC phone shipments for 2011.

While Apple has applied for a number of patents featuring NFC, the company may not believe the technology is mature enough or that there is a sufficient infrastructure of readers and tags to create a compelling user experience, said observers.

That is despite that fact that Apple’s main rivals in the smartphone market, Google, Nokia and Research in Motion, all have embraced NFC. But they are just starting to introduce phones.

A key theme running through Apple’s NFC patents is use of the technology to pair Apple devices and enable users to share content and settings among the devices.

For that, it wouldn’t need an NFC chip that supports payment or other applications using card-emulation mode or a chip that comes with an embedded secure element. Other NFC chip suppliers besides NXP and Inside might be ready to supply this, though these chip suppliers are still believed to be gearing up for the market.

In any case, Clemmer would have no reason to pour cold water on the stubbornly persistent rumors that Apple will embrace NFC for this year’s iPhone–even if NXP were not the supplier. NXP’s share price has more than doubled since December, fueled by the buzz around NFC and especially the chip maker’s partnership with Google to incorporate NFC in Google’s Nexus S phone and its Android smartphone operating system. 

Clemmer, at the Reuters event, also noted that the company is working with all major handset makers and mobile operating system suppliers, which would include Microsoft and its Windows Phone operating system that has been adopted by Nokia.

He claimed that NXP holds a 70% share of the NFC chip market this year, and kept to his projection that there would be about 70 million NFC chips shipped in 2011 and about double that next year from all suppliers, the NXP spokesman confirmed. The Reuters story inaccurately stated that Clemmer had projected NXP itself would ship 70 million chips this year and double that or more in 2012. Inside Secure’s CEO Rémy de Tonnac disputes the NXP estimate on market share, telling NFC Times last week, “Let’s count the chips at the end of the year.”

Clemmer also predicted that in five years, two-thirds to three-quarters of all smartphones would pack NFC.

Within a few years, much of this NFC technology in smartphones is expected to be incorporated in combination wireless chips that also support such technologies as Bluetooth, WiFi and GPS.

NXP does not produce these types of chips, which are instead made by such companies as Broadcom. It would then focus fully on secure elements to support NFC applications in the phones, Clemmer said.

HEADLINE NEWS

Transport Officials in Sydney See Growing Demand for Contactless Fare Payments but Have No Plans to Retire Closed-Loop Opal

NFC TIMES Exclusive Insight – Transport officials in Australia have released figures on use of contactless payments in Sydney and New South Wales, showing that customers tap their contactless credit and debit cards and NFC devices for an average of 1.5 million transactions per week, accounting for a relatively small but respectable number of transactions.

Insight: Moovit and Cubic Betting that MaaS Can Help U.S. Transit Agencies Regain Lost Ridership

Jan 24 2020

NFC TIMES Exclusive Insight – With public transit ridership decreasing in most large U.S. cities over the past five years, transit authorities are more open to becoming part of Mobility-as-a-Service platforms, which could potentially increase ridership for their rail and bus networks while offering customers options for the first and last mile. 

Philadelphia Transit Authority Confirms Plans for Launch of Open-Loop Payments after Delays

NFC TIMES Exclusive Insight – The Southeastern Pennsylvania Transportation Authority, or SEPTA, in Philadelphia plans to introduce open-loop payments of fares, with a pilot scheduled for around June, a spokesman confirmed to NFC Times. It makes SEPTA part of a small but growing number of U.S. transit agencies that are accepting payments of fares from contactless bank cards and NFC wallets or are planning to do so.

Contactless Payments of Fares Gets Slow Start in Miami, According to Figures

NFC TIMES Exclusive – Take-up of open-loop contactless payment of fares in Miami-Dade County, Fla., has been slow so far, more than four months after transit

Mobility as a Service Continues to Get Rolling with Uber Expanding Service to Second U.S. City

NFC TIMES Exclusive Insight – Mobility as a service is expected to reshape the traditional transport industry, and while it is just getting rolling, the pace is starting to pick up. The latest bit of momentum came this week when global ride-hailing service Uber announced it will enable mass transit riders to buy and redeem tickets from its app in a second U.S. city, Las Vegas.

Contactless EMV Card Rollout in U.S. to Pick Up Speed in 2020, but Shape of Adoption Remains Unclear

NFC TIMES Exclusive Insight – With contactless EMV cards expected to have a significant footprint in the U.S. in 2020, the debate continues over whether the rollout will promote or harm take-up of NFC mobile payments and whether contactless open-loop transit payments will make a real impact on use of contactless at the retail point of sale.

More Open-Loop Transit Payments Services to Launch in Taiwan

Dec 24 2019

NFC TIMES Exclusive Insight – Taiwan’s airport train service will begin accepting Visa- and Mastercard-branded credit cards starting next month, making it the second mass-transit service on the island nation to support open-loop payments for fares.

In-Depth: China Moving Forward On Face Payments of Transit Fares, Despite Some Hesitation by Users of Technology

NFC TIMES Exclusive Insight –  More and more Chinese cities are trialing use of facial recognition technology for transit ticketing, a development that could enable users to avoid either cards or smartphones to pay fares on subways and other modes of transit.

Apple Launches Express Transit in London; Mobility Service also Adds NFC Payments Feature in Apple Wallet

NFC TIMES Exclusive Insight – Apple has expanded its Express Transit service to another major market, enabling Apple Pay users to pay for fares on Transport for London-run trains and buses without first authenticating themselves on the NFC devices.

Analysis: Outlook Remains Dim for Bank Mobile Wallets as Another Major Bank Plans to Shut Down its Wallet App

NFC TIMES Exclusive Insight – Major Dutch bank ABN Amro will discontinue its NFC-enabled mobile wallet in January, a little more than three years after launching the app in late 2016, with the bank acknowledging that few customers use the service.

Use of Contactless EMV to Pay Transit Fares Accelerating, According to Two Agencies That Launched Service This Year

NFC TIMES Exclusive Insight – Two transit agencies, one large and one small, that began accepting contactless bank cards and NFC wallets to pay fares in recent months are reporting that use of the new payments services is accelerating among their customers.

More Transit Authorities and Operators, Including Those in UK, to Support Google Pay

Nov 6 2019

NFC TIMES Exclusive – San Francisco Bay Area transit authority MTC has confirmed to NFC Times that it will support mobile payments with its closed-loop Clipper transit card, including with Google Pay, by the end of 2020.