Market & amp; Technology spoke with John Dixon, Director of Corporate Marketing of NXP Semiconductors, on the IoT and the opportunities and problems that it has to offer this miraculous billion dollar market .
market & amp; technology: IoT is a catchword that and nothing describes everything. Where does NXP  here its priorities
John Dixon: Transportation is certainly an important area.
So the Connected car?
We are the number 1 in the automotive market, but under Transportation I do not understand yet only the Connected Car. It goes on the mobility, that is, that in addition to cars and trains, trucks, farm equipment, etc. fall into this range. And here, in my opinion, there is great potential for growth, because even on the part of OEMs here, there is great interest in connectivity. In addition, of course, the smart, connected devices like wearables and mobile devices. Smart industry is also an important segment, as well as smart home and smart buildings.
There are also statements that the IoT market the money is not earned on the hardware, but the software , If true, these are not rosy outlook for NXP.
It is certainly true that the differentiation is in the software. But the need and the hardware, based on which the OEMs to differentiate themselves. And with the hardware platforms, there will be differences, such as lower power consumption, higher reliability and higher performance. So there is also the IoT market differentiation opportunities for semiconductor manufacturers.
Is there not yet a risk that everything is decided on the price? – In the IoT market can certainly generate much revenue. But profit?
The customer must of course see the value, otherwise he is not willing to pay more. But if you can provide it, then it works. Since there are many examples. People pay, for example, for a flat screen significantly more money than the old tube TV. A NEST thermostat is significantly more expensive than ordinary thermostats, but people are willing to pay the extra cost, because they see the value.
The car is so often referred to as the most complex IoT nodes how do you see the development?
the car limps typically after several years behind the development of the consumer industry. But this is changing, in some areas the car is even faster in the adaptation of new technologies as the consumer industry. An example is V2X communications that goes far beyond what is known, for example from the home automation field.
Is not V2X rather a bad example, because it is already discussed forever , the implementation has not taken place?
This is the case with all new technologies. Check out WLAN in your vehicle. Currently, there are several premium providers who provide in their vehicles a wireless hotspot. This will certainly not be available in all other vehicles in a very short time, but it’s a start. Once the systems are cheaper, and here are the OEMs themselves interested in the adaptation takes place in width. V2X is certainly no mass technology, that’s true, but they will come, and I believe that once the communication within the vehicle must be made suitable for mass production, before the communication is addressed to the outside world.