Juniper throttles back on NFC market forecast due to iPhone 5 omission
Juniper Research has throttled back on its mobile near field communications (NFC) market forecast because of Apple's (NASDAQ: AAPL) decision to omit an NFC chipset from the iPhone 5.
Global NFC transactions are expected to total $110 billion in 2017, down significantly from the $180 billion forecast earlier by the U.K.-based research firm.
Apple's decision to omit an NFC chipset from the iPhone 5 has reduced retailer and brand confidence in NFC technology, leading to reduced point-of-sale rollouts and fewer NFC campaigns, noted Juniper.
"While many vendors have introduced NFC-enabled smartphones, Apple's decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about new mobile services. " said report author Windsor Holden.
Apple's decision is expected to have the greatest impact on the North American and Western European NFC markets, causing a two-year lag in POS investments, the research firm predicted. At the same time, Apple's decision is predicted to have little impact in Asia, particularly in Japan and Korea, where NFC technology is widely used for retail transactions.
Despite Apple's decision, NFC trial consumer feedback has been positive, suggesting strong latent interest when services are more widely deployed, Juniper judged.
- see Juniper Research's release
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