Apple (AAPL) is opening its Near Field Communication (NFC) technology to third-party developers, allowing them to build contactless payment iPhone apps. This move comes after years of scrutiny from U.S. and U.K. regulators over antitrust concerns related to AAPL’s exclusive control over iPhone NFC capabilities.
Following the release of the iOS 18.1 update, NFC access will initially be available in the U.S., the U.K., Australia, Brazil, Canada, Japan, and New Zealand. However, developers will be required to sign a commercial agreement with Apple and pay undisclosed fees.
Brief Background
Previously, only Apple’s apps, such as Apple Pay and Apple Wallet, could utilize the NFC chip. This exclusivity allowed Apple to collect a fee on credit card transactions through its platform, drawing the attention of global regulators.
The decision to open up the NFC chip follows a settlement with the European Union’s antitrust regulator. Additionally, the company is facing a major lawsuit from the U.S. Department of Justice, which accuses Apple of maintaining an illegal smartphone monopoly and blocking other payment providers.
Is Apple a Buy, Sell, or Hold?
On TipRanks, AAPL has a Moderate Buy consensus rating based on 24 Buys, seven Holds, and one Sell rating assigned by analysts in the past three months. The analysts’ average price target on Apple stock of $248.78 implies 12.2% upside potential.
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