Apple Inc. (NASDAQ:AAPL) recently applied to trademark the iWatch in Japan. This report comes from Bloomberg and it could prove to be an indicator that Apple may be in the process of entering the smartphone business.

Apple iWatch

Apple Looking For iPhone Trademark

Apple Inc. (NASDAQ:AAPL) is looking for protection of the name/trademark “iPhone” and it’s listed in the category for handheld computers or even smartwatch. The filing, which was made on June 3rd, became public just last week.

Shares for Apple Inc. (NASDAQ:AAPL) have dropped over 40 percent from last year’s high record, during concerns that CEO Tim Cook took his time delivering a breakthrough product which would give the iPhone an edge overcompetition. Apple Inc. (NASDAQ:AAPL) currently has a team of 100 product designers reportedly working on a wristwatch device that would perform some of the same tasks that the iPhone and iPad cover.

Raymond James & Associates Inc analyst Tavis McCourt said, “We can expect a full TV at Apple in the future, maybe a watch, and who knows what other future devices. New connected devices, whether they are TVs, cars or other devices are likely to be first adopted by high income consumers, over whom Apple dominates globally.”

Apple’s Share Price Target

McCourt also released a research report on Monday in which he upgraded the shares to a strong buy with a target price of $600.

The smartwatch is not a new concept. Earlier this year, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) announced plans to develop a smartwatch after seeing the success Sony Corporation (NYSE:SNE) (TYO:6758) has had with their SmartWatch, which works by connecting wirelessly to the Android operating system and delivers emails, text messages, Twitter updates, weather updates, and more to users.

The smartwatch wouldn’t replace the smartphone but it would work in conjunction with it to create a better user experience. An Apple Inc. (NASDAQ:AAPL) iWatch could be the next big thing for Apple and their users.