This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

iWatch Patent Trail Continues (Update 1)

Stocks in this article: AAPL MSFT GOOG

Updated from 8:40 a.m. ET to include more analysis in the ninth paragraph.

NEW YORK ( TheStreet) -- If you didn't think the iWatch was coming, you'd better think again.

One day after the patent discoveries that Apple (AAPL - Get Report) has tried to trademark the iWatch name in Russia and Japan, come more reports about the reportedly named smartwatch being trademarked all over the world, this time in Mexico.

Apple shares were little changed in pre-market action, trading at $408.52.

Apple blog 9to5Mac has obtained documents showcasing Apple's trademark for the "iWatch" name with Mexico's "Institute of Industrial Property."

The interesting thing is that Apple has filed the patents on the iWatch all within a few days of one another, with the latest request filed on June 3, but made public only recently.

The smart watch category is expected to be a huge, and Apple is obviously paying attention to it. According to Kleiner Perkins Mary Meeker, wearable devices are expected to be the leader in a new wave of technology devices, starting perhaps as soon as next year.

A smart watch could replace several of the activities we do on our phones already, Perkins noted, including messaging, making and receiving calls, checking time, music and a host of others. Coupled with Apple's iOS mobile operating system, an iWatch could sync or interact with an iPhone or iPad, providing Apple with another "sticky" device, as well as another revenue driver.

The smart watch category, with rumored entrants from Microsoft (MSFT - Get Report) to Google (GOOG) to Samung, could wind up being a big market. Morgan Stanley analyst Katy Huberty believes a smart watch by Apple could be an advantage over the smart watches that are currently in the market, including Nike's (NKE) SportWatch. In a previous research note, Huberty said an iWatch could be worth as much as $10 billion to $15 billion in annual revenue for Apple, assuming a $200 price point.

Not only would a smart watch Apple generate additional revenue for Apple, it could help change investor sentiment that the company can no longer innovate. In recent weeks, Apple has let it be known that the mantra it can't innovate anymore is clearly affecting its line of thinking, as it demo-ed the new Mac Pro, which is due out later this year. A new product, such as an iWatch, would change the perception investors have, and potentially change the trajectory of the stock.

AAPL Chart AAPL data by YCharts

Apple CEO Tim Cook has fueled the fire of an iWatch recently, as he called wearable technology a profound opportunity.

"I don't want to answer that one," Cook said, when asked if Apple would participate in the space. "But I see it as a very important branch of the tree. I think the iPhone pushed us forward fast and the tablet accelerated it. I think wearables could be another branch. I think this group will be very involved in this."

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs