Major Credit Card Deal Will Push NFC-Equipped Phones to 550M Units by 2015 (NXPI)
Tweet
Share
E-mailGet Alerts T Hot Sheet
Price: $25.35 +0.80%
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
According to new research from IHS iSuppli, global shipment of wireless handsets with near field communication (NFC) technology is expected to rise to nearly 550 million units by 2015, propelled by a decision by three major U.S. wireless carriers to partner with leading credit card companies on a mobile commerce initiative.
AT&T (NYSE: T), Verizon (NYSE: VZ) and T-Mobile said earlier this month that they will work with Visa (NYSE: V) and MasterCard (NYSE: MA) on their Isis joint venture. This was a new development, as the two largest credit card processors were not included when the original Isis joint venture was announced in November.
"By partnering with the dominant players - Visa and MasterCard - the wireless carriers are making the right moves to create an ecosystem that will allow consumers to become comfortable with making NFC payments through their cell phones," said Dr. Jagdish Rebello, director and principal analyst for communications and consumer electronics with iSuppli. "The carriers hope to leverage the dominant position enjoyed by Visa and MasterCard in credit card payments to ensure a seamless consumer experience when customers use their mobile phones to make payments. Such a move will drive an increase in unit shipments of cell phones with embedded NFC capability in the United States and around the world."
The Visa/MasterCard news, in addition to Google's (Nasdaq: GOOG) continued efforts with NFC for its Android operating system, pushed IHS to raise their NFC-equipped cell phone estimates.
IHS now predicts 93.2 million NFC-equipped cell phones will ship worldwide in 2011, up from their December forecast of 79.8 million. In 2014, the firm sees 411.8 million units, versus their prior view of 220.1 million. In 2015 IHS now sees 544.7 million units, or 30.5 percent of all cell phones shipped.
A company not mentioned in the report, but one that could see interest on this new research is NFC market leader NXP Semiconductors NV (Nasdaq: NXPI).
AT&T (NYSE: T), Verizon (NYSE: VZ) and T-Mobile said earlier this month that they will work with Visa (NYSE: V) and MasterCard (NYSE: MA) on their Isis joint venture. This was a new development, as the two largest credit card processors were not included when the original Isis joint venture was announced in November.
"By partnering with the dominant players - Visa and MasterCard - the wireless carriers are making the right moves to create an ecosystem that will allow consumers to become comfortable with making NFC payments through their cell phones," said Dr. Jagdish Rebello, director and principal analyst for communications and consumer electronics with iSuppli. "The carriers hope to leverage the dominant position enjoyed by Visa and MasterCard in credit card payments to ensure a seamless consumer experience when customers use their mobile phones to make payments. Such a move will drive an increase in unit shipments of cell phones with embedded NFC capability in the United States and around the world."
The Visa/MasterCard news, in addition to Google's (Nasdaq: GOOG) continued efforts with NFC for its Android operating system, pushed IHS to raise their NFC-equipped cell phone estimates.
IHS now predicts 93.2 million NFC-equipped cell phones will ship worldwide in 2011, up from their December forecast of 79.8 million. In 2014, the firm sees 411.8 million units, versus their prior view of 220.1 million. In 2015 IHS now sees 544.7 million units, or 30.5 percent of all cell phones shipped.
A company not mentioned in the report, but one that could see interest on this new research is NFC market leader NXP Semiconductors NV (Nasdaq: NXPI).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- DA Davidson Starts Comfort Systems USA (FIX) at Buy
- Deere (DE) PT Lowered to $728 at UBS as Agricultural Machinery Cycle Gets Closer
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
