Apple SIM Is Bad News for This Company

Apple SIM Is Bad News for This Company
Advertisement
Shares in French digital security company Gemalto slumped on Monday as investors worried that Apple's new SIM card for its latest iPads could threaten part of Gemalto's business.

"Apple's new iPads launched last week may begin a material shift in operators' attitudes towards SIMs... and a threat to Gemalto's largest revenue stream," analysts at Barclays said in a note to clients.

Gemalto shares have lost as much a fifth of their value since last week when US tech giant Apple announced that it would begin integrating SIM cards directly into its tablets.

"This new risk factor adds to the already cooling excitement for operators' SIM-based wallets," said Barclays, predicting that Gemalto shares could fall as low as 50.27 euros.

They fell as much as 9.66 percent to 53.12 euros in Paris, before recovering to close the day just above the flatline at 59.17 euros. The broader CAC 40 index lost 1.04 percent.

Gemalto makes part of its profits from installing chips and managing payments in the fast-growing mobile transactions market.

But analysts now think that Apple's decision to work directly with Visa and Mastercard could squeeze Gemalto out of the market, particularly if the new move spreads to Gemalto's home market of Europe, from the US and Britain.

Gemalto wants its Platforms & Services business, which houses the part that could be threatened by Apple, to grow at a compound annual rate of 20 percent a year to generate revenues of 1.0 billion euros ($1.3 billion) by 2017.

Gemalto dismissed the threat from Apple, telling AFP that the market "did not understand Gemalto's business" and they remained world leaders in providing the "ultra-secure platform" required for such transactions.

"With this process, there will be a recurring need for remote management. This is rather good news for us. When the market understands that, it will largely correct," Gemalto added.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Gemalto, Apple, Apple SIM, Mobiles, Telecom
Apple Pay: Everything You Need to Know
Flipkart's Big Billion Day Sale Not Being Probed, Says Minister
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »