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This is About to Become the Most Investable Technology of the Year

Imagine you’re one of the executives at a pioneering, cash-rich technology giant like Apple (AAPL), Microsoft (MSFT), or Oracle (ORCL).

When you want to innovate in a particular field, it’s only natural to realize that someone else might actually possess better expertise and technology.

And when you don’t own that technology, the choice is clear:

You can either compete with the company, or just buy it and its technology outright.

That’s exactly what’s happened in this particular case within the fast-growing and lucrative field of biometrics…

A Biometric Buying Spree

On July 27, 2012, Apple scraped together $365 million in loose change to buy Florida-based fingerprint sensor company, AuthenTec.

The deal took on more importance because, at the time, AuthenTec was reportedly hawking its new smart sensor technology to the likes of Cisco (CSCO), HP (HPQ), Lenovo (LNVGY), LG (LPL), Motorola, Nokia (NOK) and Samsung, among others. In other words, some of Apple’s direct competitors.

And the buyout of AuthenTec wasn’t merely a case of Apple acquiring a technology to put on the shelf so it didn’t have to compete against it in the marketplace. It was a deliberate move to bolster Apple’s own offerings.

A few months after that, on October 3, 2012, Apple inked a deal with an Australia-based startup, Microlatch. The company’s expertise? Patent-protected software that meets banking security standards for processing fingerprints and biometrics on devices without the need for storage or transmission.

Both acquisitions happened after Apple had filed patent application #20120258773 on April 7, 2011, for integrated security features using biometrics, which could also be used in e-commerce transactions (i.e. – mobile payments).

Why is all this important now? I’ll tell you…

The Truth in a Sea of Rumors

The latest rumors suggest that the iPhone 6 – due out later this year – is going to include a fingerprint sensor.

Now, I don’t expect you to accept that rumor as a Gospel Truth. But Apple’s biometric acquisitions and patents strongly point toward it.

If you have any doubts, consider what’s happened to Apple’s other holdings…

Lala is now iTunes Match… Quattro Wireless is now iAd… IMSense is now iPhone HDR… and Siri is still, well, Siri.

One thing should immediately stand out to you here…

Apple bought AuthenTec with the sole intention of incorporating its biometric hardware into an iPhone.

Apple is one of the trend-setters when it comes to what technology is embedded in mobile devices. The company’s patent filing mentioned above, plus the acquisitions and various other biometric-related patent applications that the company has filed in recent years, are clear proof that Apple has a big interest in biometric technology. Or at least a belief that it’s going to be useful and relevant in the marketplace.

Particularly in relation to mobile payments. Why else would it waste the time and expense filing the patent applications?

In the span of a few short months, Apple secured all the necessary pieces to incorporate biometric identification and mobile payment capabilities into a device – the patents, the software and the hardware.

Add it all up, and biometric technology is clearly gaining momentum.

Moreover, as I told you in our free report – The Seven Most Investable Technology Trends of 2013 – “An Apple product with a fingerprint sensor is inevitable – and sooner rather than later.”

Once it hits, the rest of the mobile market won’t have any choice but to follow Apple’s lead. Especially given that Apple sold a staggering 26.9 million iPhones in the last quarter.

Bottom line: Forget trying to remember multiple usernames and passwords. Biometrics are the way forward – and there’s never been a better time to invest in biometric companies whose technology will be part of the ever-increasing number of mobile devices.

Ahead of the tape,

Louis Basenese