NXP Semiconductors (NXPI - Free Report) recently announced that DOCOMO and Sony will be utilizing its Ultra-Wideband (UWB) solution for a live mobile payment demonstration.
This reflects the growing adoption of the company’s UWB technology by mobile vendors for smooth connectivity experiences. DOCOMO and Sony will demonstrate the impact and benefits of UWB technology to FeliCa-based services. These services cover transportation, in-store payments, building access and many more.
NXP is gaining popularity among mobile, IoT and automotive makers for its recent announcement of an all-in-one solution, which combines Secure Element, Near Field Communications and UWB fine-ranging technology to enhance the precise positioning performance of next-generation, UWB-enabled mobile devices.
Growing Efforts to Boost UWB Portfolio
In November last year, NXP expanded its UWB portfolio by adding a new automotive UWB IC to give spatial awareness to UWB-equipped cars, mobiles and other smart devices, enabling cars to precisely locate its users. Notably, this technology enabled smartphone-based car access to offer the same level of convenience as the state-of-the-art keys. Furthermore, the UWB IC is capable of protecting the car against theft through relay attacks.
Again, in June last year, NXP announced the development of the UWB technology, designed for a broad range of markets, including mobile, automotive, IoT and industrial, offering secure ranging and precision sensing capabilities. This enabled the creation of a new dimension of spatial context for wireless devices.
Notably, this strategic announcement has set the stage for UWB-enabled use cases, like the ones to be demonstrated by DOCOMO and Sony.
Per Databridge Market Research, the global UWB market is set to witness a CAGR of 5.70% during the 2019-2026 period. This projection encourages us about the prospects of NXP in this market.
Zacks Rank and Key Picks
NXP currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Fortinet, Inc. (FTNT - Free Report) , SYNNEX Corporation (SNX - Free Report) and Silicon Motion Technology Corporation (SIMO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Fortinet, SYNNEX and Silicon Motion is currently pegged at 14%, 12% and 7%, respectively.
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