A research report from investment bank RBC Capital Markets has raised the price target for Apple stock from $154 to $171, speculating that the tech company is well-positioned to enter the cryptocurrency market. RBC's reasoning is that the Apple can tap into a large user base for its Wallet app, which is pre-installed on all phones, to start introducing cryptocurrency exchange. Apple also has a good reputation for secure computer systems.
This analysis makes sense, but the Patent Forecast® suggests Apple still has some catching up to do. The tech company lags behind in cryptocurrency patents and has not filed any new applications since 2018. If Apple really wants to enter this market, it will need to invest in owning assets, either by patenting, acquiring, or licensing new technologies. Of course, Apple is no stranger to these deals: in 2020, the company bought over 17,000 telecommunications patents from Intel for $1B. We can expect the company would have no problem putting down cash to enable new cryptocurrency technology. When it comes to crypto wallets, some big players in the field include IBM, Bank of America, Intel, and Nchain. Bank of America even has patents covering wearables as payment devices. Will any of these companies be receiving a call from Apple soon? Or will the company start to invest in its own R&D? You can keep up with the moves and insights that will signal an upcoming pivot by following the Cryptocurrency Patent Forecast®.
