One more step to leaving the physical wallet behind with iOS 13 

One more step to leaving the physical wallet behind with iOS 13 

It’s long been thought that you leave home with four things – keys, money, wallet and your phone. Over time that thought process has shifted due to digital locks and payment systems to just your wallet and phone. We here at Tematica have been wondering for some time when personal identification, be it an identity card, drivers license, or passport, would become digitized and stored on our smartphone.

It would seem that day is finally approaching, but as with other forays into our Digital Lifestyle investing theme, we will likely see an added identify management tailwind for our Safety & Security theme as well

The Federal Ministry of the Interior has announced that it will be possible to scan German ID cards with an iPhone running iOS 13.

This follows earlier news that iPhones will be able to scan the NFC chips in Japanese ID cards and British passports

Apple originally locked the NFC reader in iPhones so that it only supported the data format for contactless payment cards, limiting use to Apple Pay. With iOS 13, Apple is removing that restriction, so that iPhones fitted with the chip will have the technical ability to read any NFC chip.

Apple still needs to approve apps on a case-by-case basis, but the existing precedents mean we can expect it to approve all official government apps for passports and ID cards. Any country that wants to be able to offer this capability to its citizens will be able to do so.

Macerkopf reported the news from Germany, noting that this will make it easier for German citizens to verify their identity online, as well as using the virtual card at airports.

Source: You can scan German ID cards in iOS 13; more countries likely 9to5Mac

Verizon’s 5G in 30 US cities by end of 2019

Verizon’s 5G in 30 US cities by end of 2019

As we enter Mobile World Congress 2019, arguably the mobile event of the year, 5G network and device launch details are coming into greater focus. Verizon is taking the early lead in the US staking out 5G to 30 cities in the US by the end of 2019. Of course, 30 cities is hardly national coverage, which means a continued deployment for this aspect of our Digital Infrastructure investing theme well into 2020 at least for the US if not into 2021. Factor in the competitive response from AT&T and the soon to be combined T-Mobile USA and Sprint, and it means the likely tipping point for 5G is looking increasingly like the second half of 2020. From an iPhone perspective, even though Samsung and Motorola have announced they will have devices ready by mid-2019,  this 5G network timetable means we should not be expecting any 5G news from Apple this year, but rather its annual iPhone event in September-October of 2020.

Verizon on Thursday said it’s working on deploying 5G to some extent in 30 U.S. cities by the end of 2019, another hint that the technology won’t appear in iPhones until 2020.

The first parts of Verizon’s 5G network should be up by mid-2019 though, since the carrier is the exclusive launch partner for the Samsung Galaxy S10 5G.

AT&T and T-Mobile are also working on 5G deployments. Neither carrier is expected to get very far by the end of 2019 however, owing to partly to lags in equipment. There are also relatively few 5G-ready devices on the market, offering little incentive to speed up.

Multiple reports have pointed to Apple waiting until 2020 to ship 5G-capable iPhones. The company’s preferred modem maker, Intel, is unlikely to have a 5G chip ready until that timeframe.

Source: Verizon says 5G coming to 30 US cities by end of 2019

New touch-integrated OLED screens could make 2019 iPhones thinner, lighter and cheaper

New touch-integrated OLED screens could make 2019 iPhones thinner, lighter and cheaper

We’ve long said that pain points tend to give way to solutions and that is potentially proving out in the smartphone market that has been grappling with the transition to organic light emitting diode displays, which has popped smartphone average selling prices. Given price-demand concerns for new iPhones and other smartphone models utilizing OLED displays, we’re hearing about another innovation being developed that should reduce the cost burden as well as enable thinner and lighter models in the coming quarters. Disrupting the disruptor as it were.

For Apple, this could be a very welcome solution that jumpstarts its iPhone business either ahead of or in tandem with the debut of 5G iPhone models. The question we’re pondering is how Apple, Samsung, and others will balance ASPs for smartphones using this potentially cheaper solution vs. margins on those devices?

 

A supply-chain report says that Apple will be using a new form of screen technology to make at least one of its 2019 iPhone models thinner and lighter — a trend Apple has bucked with recent flagship versions.

The report says that Apple has decided to use touch-integrated flexible OLED panels, which have a different construction to current iPhone screens …

Current screens use a separate touch-sensitive layer sitting on top of the display itself. By integrating touch-sensitivity into the OLED screen, it will allow devices to be somewhat thinner and lighter.

The report claims that the technology should be ready for use next year, but says that initial supplies will be constrained, suggesting that the new screens might be used only in next year’s highest-end model. However, as the tech is expected to be cheaper than a separate touch-sensitive layer, it is likely to be rolled out into all models as capacity increases in future years.

Source: Apple reported to use new touch-integrated OLED screens to make 2019 iPhone thinner and lighter – 9to5Mac

Mobile gaming poised to eclipse desktop gaming

Mobile gaming poised to eclipse desktop gaming

It’s rather easy to recognize the growing influence that gaming (and by that we mean video games) is having on our culture from entertainment, sports, and a few other vantage points. With networked and multi-player gaming, we are seeing gaming chip away at more traditional forms of content consumption, with certain titles giving way to films, and the rise of competitive gaming teams.

Here at Tematica, we are always looking at inflection points, and it appears that mobile is poised to hit a tipping point when it comes to gaming as it surpasses desktop play in the coming years. Given the capabilities of the just-announced iPhone XS and XSMax, and the A12 Bionic chip they have, as well as several aspects of our Disruptive Innovators theme, like Augmented Reality, we could very well see this tipping point emerge sooner than forecasted.

 

The global mobile gaming market could grow from $56 billion in revenue in 2017 to $106.4 billion in 2021, according to a recent report by Newzoo and Arm. That would represent 59 percent of the entire video game market by 2021, compared with 46 percent last year.

With 577.9 million mobile gamers, China is the largest mobile gaming market in the world. But the growth of China’s gaming market could be throttled by tighter regulations over game approvals and play time limits for minors

Source: Mobile gaming revenue could top $100 billion globally by 2021

Apple Pay now at Costco 

Apple Pay now at Costco 

The chicken or the egg problem that has been facing mobile payment adoption in the US continues to ease with Costco Wholesale joining the ranks of 7-11 and CVS Health to accept Apple Pay. It’s all about reducing transaction friction but I’d also add it’s a relief for someone like me that sometimes forgets his wallet, but not his iPhone. With Consumer Reports recently crowning Apple Pay the winner in a head to head showdown of mobile peer-to-peer payment platforms, beating out the likes of Venmo and Square, and greater retail acceptance we are likely to see greater usage in the coming quarters- a positive for Apple’s growing Services business.

 

Costco has announced that it now accepts Apple Pay at all of its US warehouse stores, and says that the payment method will be coming soon to its gas stations …

The company told CNET that contactless terminals have been installed at both store checkouts and gas stations, but the latter are not yet in use.

Costco was a notable Apple Pay holdout after 7-11 and CVS finally announced their own rollouts last month.

.A recent analyst report suggested that Apple Pay now has more than 250M users worldwide, led by international adoption. Use of the service for online payments is lagging significantly behind offline use, though a recent survey suggested that demand is there.

Source: Apple Pay now accepted at all US Costco warehouses, coming soon to gas stations | 9to5Mac

iPhone to be proof of identity and replace passports?

iPhone to be proof of identity and replace passports?

We’ve all heard about and even longed or the day when we would no longer have to carry one’s money, credit cards, keys, and identification. Mobile payments like Apple Pay and aspects of the Connected Home have helped ease the burden on our pockets and bags, but identification has been the more elusive category. It seems, however, that Apple is looking to address that using the iPhone as a form of identification. Odds are Apple would first test such authentification on its own campus, but the possibility of replacing drivers licenses, passports and other forms of identification with the iPhone, even if mixed with another form of biometric security, is an intriguing idea. It’s also one more way Apple would make its already sticky products and services even more so with its growing user base. For investors and Apple shares, it would move them even deeper into our Safety & Security investing theme.

 

In future identification challenges, the device will be asked for the credentials by the authority, triggering the device to perform an authentication check with the user. While this could be as simple as entering a password, there is also a version that uses biometric security for the device-based authentication.

In either case, successful authentication on the device would hand over data to the requesting party. The patent application also cites the growing use of e-Passports, which includes a chip that stores an assortment of data about a user, including their name and date of birth, which can be used by customs officials to determine the user is who they say they are. Apple suggests the described system could potentially hand over a passport number or other similar data, to perform the same check.

While in most cases the patent application suggests the use of not-yet-produced hardware, in this case the components are already in place, in the form of the iPhone. It already has radio-based communications with NFC, an encrypted secure enclave that holds fingerprint and facial map data for Touch ID and Face ID respectively, and biometric-based authentication systems.

Such a system could be used by private companies, for example in authenticating employees entering a facility, but while the suggestion for the passport number is plausible, legislation becomes the stumbling block.

Source: Apple wants iPhone to be proof of identity and replace passports

A new digital key standard could finally put your car key inside your iPhone

A new digital key standard could finally put your car key inside your iPhone

We as a people have been carrying many things in our pockets when we leave the house – first keys and wallet then keys, wallet and phone. As part of our Cashless Consumption investment theme we have seen mobile wallets begin to proliferate as well as apps like Apple Pay and PayPal that likely mean at some point we won’t have to carry our physical wallets – if only someone can figure out a digital driver’s license.

Before too long it seems we may be able to ditch the car keys as well, which will naturally be incorporated into our smartphones. We’ve already seen smartphone apps that unlock and lock doors as well as garage doors, which to us means car doors are inevitable. Of course, as this happens it also means another avenue of potential theft that will be a part of our Safety & Security investing theme.

The Car Connectivity Consortium, which counts Apple among its charter members, on Wednesday announced the publication of new “digital key” standard that allows drivers to actuate vehicle systems like door locks and the engine via an NFC-enabled smartphone.

With its technology, aptly dubbed the Digital Key Release 1.0 specification, the CCC aims to bringautomotive manufacturers and mobile device makers together to create an interoperable digital key standard.

The system operates in much the same way as first-party digital keys currently available from a handful of vehicle OEMs. Users with authenticated smart devices are able to lock, unlock, start the engine of and share access to a specific car. Unlike some remote control solutions that leverage Wi-Fi or Bluetooth communications, however, Release 1.0 appears intrinsically tied to short-range technology like NFC.

Relying on existing Trusted Service Manager (TSM) infrastructure, Release 1.0 allows carmakers to securely transfer digital key information to a smart device like a smartphone, perfect for car-sharing or fleet deployments. Specialized hardware like near-field communications chips and internal secure elements provide a high level of user protection.

According to a white paper outlining the technology’s architecture, Release 1.0 looks to create standardized interfaces between a car, a smart device’s NFC and Bluetooth Low Energy stack, secure element, first-party app, TSM, OEM backend and SE provider. OEMs are responsible for proprietary interfaces between their respective backends and the car.

As noted by the group, which focuses on developing mobile device-to-vehicle connectivity solutions, a number of carmakers already field proprietary digital key solutions, though the market is fragmented. A single unifying standard would not only enhance the customer experience, but provide manufacturers access to the latest security protocols and technological advancements, the CCC argues.

CCC charter member Audi is already using digital key technology in its vehicles, while Volkswagen, another charter member, said it plans to integrate the technology soon. Alongside Audi and Volkswagen, Apple, BMW, General Motors, Hyundai, LG Electronics, Panasonic and Samsung are listed charter members of the organization, while core members include ALPS, Continental Automotive, DENSO, Gemalto, NXP and Qualcomm.

The CCC says it is already working on a Digital Key Release 2.0 that should be completed by the first quarter of 2019. The second-generation technology will provide a standardized authentication protocol between the vehicle and a paired smart device, and will be fully with interoperability between difference smartphones and cars.

Source: Apple wants to replace your car keys with an iPhone