Apple (AAPL) is still enjoying unprecedented success with the iPhone 5, they are set to give Sony a run for their money by applying a trademark for the term "iWatch" from the Japan Patent Office.

The move was made to protect the identity of the newest product which is a watch device. This new offering could continue the line of breakthrough products that the company has made which includes the iPad, iPad Mini, iPod and iPod Touch.

The said device is now being developed by over 100 engineers and designers and it would also run on the Apple iOS system. This means that the same functions that can be done with the iPhone and iPad could also be completed with the iWatch.

Due to this development, Samsung Electronics' Vice President for Mobile Technology Lee Young Hee revealed that they too are making a smart watch. Also, Microsoft seems to be jumping into the bandwagon as their recent moves suggests that they are in the process of creating their own product.

If Apple Inc. becomes successful in launching their smart watch before their competitors, it will bring significant boost to their fiscal portfolio as their share prices have decreased. To address the situation, the company had to resort to a capital return program worth $100 billion. To start this process, Apple has borrowed $17 billion worth of bonds.

The wearable gadget trend seems to be on the rise as Google also release the Google Glass wherein applications can be run via a small screen perched on top of one eye. As for the smart watch, analysts predict that this market will be worth $60 billion and any company who can get even just five percent of the share can gain profits of $3 billion.

Sony Corporation had its own smart watch launched a year ago. This device allows a wireless connection between the wearable item and a smart phone via Google Android. The link enables a user to take calls or respond to electronic mails and SMS using the watch.

Meanwhile, the Apple iWatch is set to be released on either the third quarter or the fourth quarter of 2013. One of the intriguing features of this gadget is its Willow Glass screen that is lightweight and flexible. It will also have WiFi and Bluetooth connectivity and will be modelled with a smart slap band. The Apple iWatch will also have a 1.5-inch screen and a kinetic energy device that allows its battery to be charged with a move of the user's arm or leg.