NFC Times Exclusive Insight – NXP Semiconductors reported its NFC-based mobile transactions business fell in the second quarter compared with the first quarter, with CEO Rick Clemmer apparently blaming the delayed launch of Apple Pay in China, which he indicated is hurting its sales of NFC chips to Android handset makers in the country.
Clemmer has been counting on increased shipments of NFC chips to Android phone makers in China, as they geared up to support mobile payments in order to stay competitive with Apple. But Apple has encountered problems in expanding Apple Pay to China, one of its key target markets for the payments service.
NXP supplies all of the NFC controllers and embedded secure elements to Apple for its iPhone 6, iPhone 6 Plus and Apple Watch, but needs growing shipments of NFC technology to Chinese Android OEMs to sustain strong growth in its mobile transactions business.