News - NXP details the NFC explosion caused by Android 2.3

[HEXUS]

The launch of Gingerbread changed everything for the NFC industry.

Read more.

[Phage]

Interesting. What does NXP get for releasing all it's IP ?
What is the Google solution on contactless payment ? Who owns the Chip ? The handset manufacturer or Google/NXP ?

[zoomee]

Last time I looked into NFC technologies there was no set standard on the actual technology.
Does this mean that all google handsets will have the same NFC technology and that google have now standardised it? hmmm......

[crossy]

Interesting. What does NXP get for releasing all it's IP ?
What is the Google solution on contactless payment ? Who owns the Chip ? The handset manufacturer or Google/NXP ?

Well, the article does say "As you can imagine, no company was more profoundly affected by this than NFC chip specialist NXP." along with "Google approached NXP and said that in order to participate in the new OS it needed to make its software stack open source. " and "And while contactless payment remains the use-case of NFC with arguable the greatest potential, a lot of other applications are coming to the fore, which are easier to implement in the short/mid term"

So, I would assume that the answers to this are:

• NXP gets the gig as the preferred(?) NFC ship supplier;
• Google may not have a "solution" for contactless payment at the moment, but maybe it's something they fancy adding to Google Checkout (obvious);
• NXP owns the chip, although it doesn't say that they've got the exclusive rights - so maybe there'll be other suppliers offered too;
• I would assume that the handset manufacturers would source the NFC chips the same way they do with the other ones - like the gyro, compass, etc. So ownership would stay with NXP.

I can't help thinking that maybe Google are going to concentrate on other uses of NFC first, like being able to receive voucher codes that you can then use NFC to redeem. Or smart advertising boards on bus shelters etc (assuming some ned hasn't vandalised it) that you could just touch your phone to if you wanted more information. E.g. advertise a local curry emporium, and then be able to get a Google Maps-hosted set of directions to that tasty vindaloo fix just by touching phone to a NFC-enabled spot on the board.

I would have thought enhanced advertising like this would be quite attractive to the advertisers, which means lucrative for Google.

But I could be completely wrong... and what they're intending in the short-term is to "borrow" an idea that HP were showing of being able to sync phone and tablet just by touching.

[Phage]

• NXP gets the gig as the preferred(?) NFC ship supplier;
• Google may not have a "solution" for contactless payment at the moment, but maybe it's something they fancy adding to Google Checkout (obvious);
• NXP owns the chip, although it doesn't say that they've got the exclusive rights - so maybe there'll be other suppliers offered too;
• I would assume that the handset manufacturers would source the NFC chips the same way they do with the other ones - like the gyro, compass, etc. So ownership would stay with NXP.

I can't help thinking that maybe Google are going to concentrate on other uses of NFC first, like being able to receive voucher codes that you can then use NFC to redeem. Or smart advertising boards on bus shelters etc (assuming some ned hasn't vandalised it) that you could just touch your phone to if you wanted more information. E.g. advertise a local curry emporium, and then be able to get a Google Maps-hosted set of directions to that tasty vindaloo fix just by touching phone to a NFC-enabled spot on the board.

I would have thought enhanced advertising like this would be quite attractive to the advertisers, which means lucrative for Google.

But I could be completely wrong... and what they're intending in the short-term is to "borrow" an idea that HP were showing of being able to sync phone and tablet just by touching.

Yeah - agreed mostly. I just not sure I see the value in the deal for NXP. Google is not a handset manufacturer. If the IP is open source they could lose it to a hundred handsets. Once it's out there, there are no exclusive deals.
Agreed, Google-domination of shopping continues !
I also think you're right on the other uses of the tech first, but I seriously think the real money will be in replacing the card schemes.

[Scott B]

Interesting. What does NXP get for releasing all it's IP ?
What is the Google solution on contactless payment ? Who owns the Chip ? The handset manufacturer or Google/NXP ?

Crossy has pretty much done my job for me.

NXP makes the actual chips, so anything that grows the NFC market grows the TAM for NXP. The standards will be open but we've already seen - most recently with Moto and Honeycomb - what an advantage it is to be working closely with Google.

There will still be competition, but NXP may have a head-start on its competitors.

[crossy]

Yeah - agreed mostly. I just not sure I see the value in the deal for NXP. Google is not a handset manufacturer. If the IP is open source they could lose it to a hundred handsets. Once it's out there, there are no exclusive deals.
Agreed, Google-domination of shopping continues !

Oh, that's any easy one to answer - I'm presuming that NXP are taking the same view as Broadcom, namely that the software stack is there merely to give folks a reason to buy their product - the chips themselves! And being preferred supplier to all the Android tablet and phone maker - even for a short time - is definitely "money in the bank". Not to say the beneficial effect on share price of being partnered with Google in this way.

If I was them I wouldn't be too worried about the software stack giving others an "advantage" - don't forget that they're always going to be slightly better off since they're setting the "standard".

I also think you're right on the other uses of the tech first, but I seriously think the real money will be in replacing the card schemes.

This'll be interesting - because unless Google partner with someone, aren't they going to be regarded as a bank. In which case there's a whole can of worms legal-wise that they've opened.

Interesting times ahead...