Morgan Stanley Comments "Implications of Apple's Mobile Payments Strategy" Benefits for NXP, V, MA, AXP and Risk for Gemalto

Tuesday, May 20, 2014, Morgan Stanley commented on the implications of Apple inc. AAPL mobile payments strategy as an important stock catalyst for Apple and NXP Semiconductors NV NXPI, with Visa V, MasterCard MA, and American Express AXP being beneficiaries of this plan, Morgan Stanley sees risk to Gemalto GTOMY. Morgan Stanley analyst Katy Huberty sees growing evidence that AAPL will adopt near field communication (NFC) as a core part of a mobile payment plan, while NXPI is well positioned to participate in Apple's mobile payment ecosystem. With the launch of the iPhone 6, Huberty sees NXT adding $250 million in sales and EPS of $0.25 in 2015. Analyst Smittpon Srethapramote notes that Visa and MasterCard have endorsed host card emulation (HCE) which, alongside this mobile payment plan, would allow for near card-present interchange fees. Andrew Humphrey, another analyst at Morgan Stanley, sees this move by Apple will be a deflationary factor for Gemalto, and at worse could substantially reduce the addressable market for them in terms of mobile wallets. Gemalto is a firm specializing in secure OTA provisioning Secure Elements. AAPL was trading up 1.29 points to 605.88 at 12:00PM EDT.
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Posted In: Analyst ColorNewsAnalyst RatingsAmerican ExpressAndrew HumphreyAppleData Processing & Outsourced ServicesGemaltoInformation TechnologyKaty Hubertymastercardmobile paymentsMorgan StanleyNXP SemiconductorsSmittpon Srethapramotevisa
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