Clearly the current wallet is archaic and ripe for change. Take a look at the amount of money lost because of credit card fraud and identity theft and you'll conclude that we can do better.
Apple is a disrupter. Its "Authentec" fingerprint technology represents a competitive advantage in the mobile payment space. Give the iWallet to the iWatch and see what happens. If an iWatch can store my credit cards, loyalty cards and drivers license it would be an innovation for consumers to consider.
Add to it that iWatch can replace car keys, house keys and office keys with an NFC chip and you have a "must have." The ultimate bonus is that all of this secure data are right where it belongs -- fastened to the wrist, only accessible with a fingerprint scan.
There is no denying the fact that the iPhone's advantage over Apple's other product lines is a result of subsidized distribution. Initial price points can make or break a product, no matter how good it is. Would American Express (AXP) be willing to provide an iWatch to its customers at a subsidized price in order to eliminate many of the costs involved with fraud protection? It makes economic sense.In a world obsessed with status, how appealing would an iWatch with the American Express Platinum logo become? Apple was willing to partner with Nike for the Nike+ line, so why not partner with select financial institutions to offer a $400 iWatch for $150? Not many consumers would spend $400 on a watch, but $150 for a wallet/key replacement? Sign me up today. This new-age product represents such progress that anyone without it would be viewed as reckless in the fight against fraud. Apple's team of innovators should be viewing the iWatch as an anti-fraud tool as the top priority. If Tim Cook can sell this anti-fruad functionality to the financial institutions, Apple will have a game changer on its hands. If not, the success of the product is at risk. EconomicTiming.com portfolio but the run is lacking momentum. Sometimes you pick a window for all the right reasons but there's no gas in the tank. Wednesday's news flow was as good as it gets (Apple TV, China, and even multiple analyst upgrades) and the corresponding +$10 action was right on schedule, but the stock is responding with no follow-through today. Without this necessary follow-through, current action qualifies as nothing more than a continued breather following the $97 August run. We remain patient as we await the start of the second leg of this run. Today we're selling a 30% allocation of AAPL October 2013 $480 calls. The easy money pre-event run might be over. Investors are telling Apple that it's time for a China Mobile (CML). No more messing around. It's time for Apple to show the market that it has a legitimate Apple TV. Considering the negative sentiment of the last year it makes sense that the market is in a 'show me' mood prior to the event. Portfolio is now at 65% cash. At the time of publication the author was long AAPL. Follow @EconomicTiming This article was written by an independent contributor, separate from TheStreet's regular news coverage.