NFC-iPhone

It seems like every time Apple is about to release a new smartphone, NFC rumors pop up. I’m not sure if some folks just really want the technology to succeed, or think the iPhone needs it to be compatible with various products and services, but the talk has seriously become an annual thing.

And this year is no different. Back in March, analyst Ming-Chi Kuo noted that his supply chain checks signaled that Apple was building NFC chips for its iPhone 6, and earlier this month, Brightwire echo’ed the claim. Today, Morgan Stanley adds its weight to the claim in an investors note…

MacRumors passes along the note:

According to Morgan Stanley, Apple is choosing NFC as the key technology for its mobile payments system, with semiconductor company NXP likely providing the necessary wireless hardware. NXP has an existing relationship with Apple, supplying the M7 motion-sensing chip found in the iPhone 5s.

NXP is well positioned to participate in Apple’s mobile payments ecosystem. The company signed a licensing agreement with a customer in Q4’13, who we believe is Apple, related to its emerging ID business. A recent patent filing by Apple revealed potential use of NFC and secure element, which we think could be embedded. NXP has also accelerated R&D spend to support a new program related to the IP deal, with revenue expected in 2H, lining up well with the launch of iPhone 6. We see this potentially adding $250mn in sales and EPS of $0.25 in 2015.

Apple has in the past avoided using NFC technology in its devices, with SVP Phil Schiller saying back in 2012: “it’s not clear that NFC is the solution to any current problem.” It does, however, hold a number of patents on near field communication, including one involving retail transactions.

A budding mobile payment system would certainly be a reason for Apple to reverse its stance on NFC. Tim Cook has admitted in the past that Apple is very interested in the space, and last week’s Brightwire report claimed the company had already inked a deal with China’s UnionPay service.

The iPhone 6 is expected to launch as early as August, and feature new hardware, a larger display and a number of other improvements.

  • Eikast

    NFC would be a nice feature. We have iBeacon and airdrop so NFC wouldn’t be needed for those things but would be nice for mobile transactions (hello Google Wallet).

  • Sachin

    NFC is nice. Also i hope they could boost the speed of airdrop also. It takes a lot of time when i share lengthy videos with friends.

  • Dan

    pretty ridiculous that the 5S doesn’t have NFC imo

    • ✪ aidan harris ✪

      ‘S’ models of iPhones usually don’t have much new features though. It’s usually just one killer feature and refinements to the hardware and software…

      • Dan

        yeah, but still, when you consider all the crap android phones that have NFC, kind of strange Apple doesn’t. S or not, when the phone is worth almost 1000$…

      • n0ahcruz3

        This ^… Anyway apple is the most innovative company eva! Their product is revolutionary, resolutionary, evolutionary and magical! People dont know what they want until you show it to them! Lol 😛

      • Kurt

        Don’t forget “iOS is the worlds most advanced mobile operation system” haha

  • n0ahcruz3

    Its about time apple. As usual apple playing catch up. Oh erase that as usual apple reinventing mobile payments. This will change everything! Very innovative and revolutionary! Its going to be like magic! ;P

    • ✪ aidan harris ✪

      NFC isn’t necessary for mobile payments. If Apple includes it with the iPhone 6 it’s probably only to ensure compatability with existing devices since if Apple truely is going to re-invent mobile purchases I think they’ll end up doing it for all devices (by which I mean as well as iOS devices existing Android devices and other devices). Then again maybe what Apple has planned will be another FaceTime (promises of an open standard but exclusive to iOS devices only)…

      • n0ahcruz3

        When other companies do it its gimmick and not necessary. When apple does it its revolutionary and magical and necessary. 😛

      • ✪ aidan harris ✪

        I didn’t say that. What I said is that existing devices have NFC so Apple is probably adding it to ensure compatibility with existing devices and systems it would make sense for Apple to add it. Adding something else would be like Apple adding a proprietary video output connector on a MacBook as opposed to a HDMI output.

        TLDR; Apple is probably not doing this to be ‘magical’, or ‘revolutionary’ they are doing this to make sure everything works as best as possible and ensure that existing NFC services would not need to be made from scratch to use Apple technology…

      • Rowan09

        NFC isn’t a gimmick, it’s like saying Bluetooth is a gimmick. Why do you hate Apple so much? I personally don’t care about NFC Bluetooth takes care of my needs. If Apple does add NFC for mobile payments I will probably never use it.

      • Carlos Gomes

        Why would you bother visiting a website dedicated to people who are into Apple’s products when you clearly see no value on those?

        Silly and counterproductive.

      • n0ahcruz3

        Lol been an apple user probably more than you are. I dont hate apple im just a critic. I dont worship any company. But i do give credit to those companies that trully innovate and push boundaries when it comes to technology.

    • Jerry Cox

      But why are you compelled to come to a web form that starts with “i” and piss on our “i” parade?

      • n0ahcruz3

        Welcome to iDB! 🙂 anyway, what are u talking about? Lol

  • whodakat

    What can NFC do that BTLE can’t? If there was something I was missing out on because its not there, then I’d be all for adding it to the next iPhone, but as far as I can tell, there isn’t anything special about it at all.

    • iBanks

      Exactly!

    • Dan

      well something I did like about NFC when I had an android phone were the stickers. I had one in my house/car/office. Scanning it would toggle gps/map, wi-fi, bluetooth, wake up for the next day, volume etc… I miss that now that I have an iPhone. I shouldn’t be missing out on feature imo, Apple is supposed to be ‘premium’.

    • BozzyB

      How do you identify yourself with BT when you e.g. want to pay something? Do you want to connect first to the counter and share PIN codes to pair?
      NFC has the advantage that it connects or reads out data when you almost touch a terminal, another NFC phone or sticker. This way it can clearly identify the correct client (phone).

      • Rowan09

        The issue with NFC before was security, someone can have a reader and get your information over the air. I had it in my bank card but they stopped using the feature for safety reasons.

      • BozzyB

        You would have to be very close like a few milimeters to the NFC antenna which is almost impossible. BT with a range up to 30 meters is then far more insecure. Bank cards with NFC are prepaid mostly up to some uncritical amount of money. Also, with a smartphone you have to confirm the transaction on the display.

      • Rowan09

        You would just need to be near the reader. I had NFC on my Chase bank card. Bluetooth would need connecting so it would be more secure. I’m for NFC but I never cared for just adding features just because.

    • Rowan09

      It’s more for mobile payments.

  • @dongiuj

    Add NFC and watch iPhone sales boost dramatically again in japan. I would guess.

  • mrgerbik

    If mobile payments dont include bitcoin, apple is shooting itself in the foot

  • Your Mother

    I think it wont have NFC because then it makes the iPhone work with non apple products….unless apple blocks it the way they do with Bluetooth–its a damn shame that I cannot use my iPad Air with my S5 or my HP Envy but all my devices can communicate with each other with out any problems.