NXP Sees Second Straight Quarterly Drop in NFC Revenue; Predicts ‘Reacceleration’ in 2014

NFC Times Exclusive: NXP Semiconductors said its NFC revenue fell in the third quarter, the second straight quarterly drop, though CEO Richard Clemmer said the Netherlands-based chip maker is “as convinced with the opportunity for NFC across the board as we ever have been,” and added that NXP would compete “aggressively” for the Samsung Galaxy S5. 

NXP, which lost the NFC controller business for Samsung’s flagship Galaxy S4 to rival Broadcom, hopes to get it back for the following version of Samsung’s popular flagship, expected to be released by next spring.

NXP's Clemmer: Still, Clemmer, speaking to financial analysts Thursday following release of NXP’s third quarter earnings report, said he didn’t expect the chip maker’s NFC unit to “meaningfully reaccelerate” until at least mid-2014. “To be fair, it will kind of be mid-next year to next fall before we see a significant ramp-up in additional design wins in the mobile transactions space,” he said.

NXP, as usual, didn’t release a specific revenue figure for its NFC business, made up of sales of NFC radio controller and secure element chips. But it usually expresses drops in sales for the unit on a sequential basis.

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Among Topics Covered:
•NXP’s Q3 2013 NFC performance
•Estimate of NXP’s NFC revenue
•NXP comments on loss of Galaxy S4 business
•Latest NFC design wins for NXP and Broadcom
•Broadcom’s statements of growth of NFC in Q3 2013
•Broadcom’s earlier comments on glitches in NFC technology in Galaxy S4

Sources Quoted:
•Richard Clemmer, CEO, NXP
•Scott McGregor, CEO, Broadcom
•Jeff Miles, VP, mobile transactions, NXP
•Mohamed Awad, director of product marketing, Broadcom 

Among companies and organizations mentioned:
NXP Semiconductors
Broadcom
Samsung 
Sony
HTC
Xiaomi 

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