NFC is the technology that enables smartphones and other devices to establish a radio connection by touching them together or coming within close proximity.' Continued.
Trish's Comment: As a Philips Semiconductors alumna, I follow NXP and always enjoy reading about their successes. For this reason, I am celebrating their arguable leadership in NFC technology. The fact that their chips can be found in the Google Wallet - currently in the Nexus S and soon in the Galaxy Nexus -, Microsoft's Windows 8 tablet - to come out next year - and future smartphones from Sony Ericsson is great news! And if we take into account the growth expected in the industry - John Devlin, an NFC analyst at ABI Research expects the number of NFC handsets to increase from about 34 million this year to about 80 million next year - this can only spell new opportunities for NXP. Even in spite of increased competition from other major players such as Inside Secure, Gemalto and Oberthur.
At the moment, the main focus is on NFC technology for mobile payments but let's not forget the opportunities it represents within mobile gaming, entertainment and social media. For example, players of Angry Birds Magic using the Nokia C7 can open new levels by tapping on another gamer's NFC-enabled phone. The location-based social networking website foursquare's uses NFC tags to simplify the 'check in' process.
Indeed, if Gartner is correct in its estimation that 50% of smartphones will have NFC capability by 2015 and that NFC semiconductor revenue will be more than $1 billion, these growth opportunities should reflect in their stock price. This fact has been reported by The Montley Fool as Rich Duprey included NXP in his list of 'Wall Street's Best Hidden Stocks'. Does your portfolio include NXP stock?