NFC Chips Predicted to See Increased Shipments in the Coming Years

October 26, 2011, By Sanjeev Ramachandran

Near Field Communications technology is on a roll.

Their increasing utilization in mobile devices has led to the prediction that NFC chips will have increased shipments over the coming years.

Market research firm In-Stat feels that the chips will cross 1.2 billion marks of units in shipment by the year 2015, which incidentally is the year by which technology is expected to touch 30% globally.

Going by what In-Stat research director Allen Nogee says:

As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits. The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.”

The United States is yet to fully embrace the idea of mobile payments for NFC. Sprint is the sole carrier that offers a handset capable of mobile payments with Google Wallet – the Nexus S 4G.

But now Verizon, AT&T and T-Mobile are looking at the ISIS initiative to help them drive the adoption in the coming years. NFC has other uses too.

The Android Beam feature that Google introduced in the Ice Cream Sandwich allows sharing of content like games and media by tapping one phone to another. That is certainly a cool and futuristic feature.

With such existing features and other uses still in development, it is certain that NFC chips will find a lot of use in future devices.

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