Did Steve Jobs Steal The iPhone From This Potential $30 Stock?

James Altucher profile picture
James Altucher

Neonode (NASDAQ:NEON), a Nasdaq company with a near-monopoly on several touchscreen technologies, developed a pre-iPhone three years before the Apple (AAPL) iPhone and has severely disrupted AAPL's patent case against Samsung. In fact, NEON might now be an acquisition candidate as a result. Additionally, their core business alone, is enough to catapult them to $30 per share.

1) Patents. Apple just shot itself in the foot and all the blood is going to go to Neon. AAPL is suing Samsung because Samsung is using Apple's patents on their swipe technology. Guess what? Samsung is saying "NO" because they are using NEON's patents, which were patented earlier.

I am always on the lookout for strong patent plays. VRNG, for instance, is going to crush Google in its patent for AdWords 4 years before Google started making money off of it. I documented that in this post.

And now I see that Apple wants 2.5% of Samsung's billions in revenues. Well, guess what? Now AAPL might have to pay that to NEON.

Samsung has been holding up NEON's patents as evidence that AAPL did not invent the "slide to unlock" feature.

Don't believe me. Here's the proof. AAPL patented slide-to-unlock in 2009. NEON patented this patent on December 23, 2005 and actually released a phone earlier that year (the first iPhone wasn't released until 2008) that included the swipe-to-unlock. A Dutch judge (where the patent battle is also being held) specifically said NEON had the "prior art" on this, so case closed. NEON first filed the patent in 2002 actually. Here's a WSJ article mentioning NEON's "victory" in the Apple vs Samsung case.

Here is what NEON's patent says: "an active application, function, service or setting is advanced one step by gliding the object along the touch sensitive area from left to right,"

This article was written by

James Altucher profile picture
James Altucher was the managing director of Formula Capital, an asset management firm and fund of hedge funds. He's written five books on investing: Trade Like a Hedge Fund, Trade Like Warren Buffett, SuperCash, The Forever Portfolio, and his latest book, The Choose Yourself Guide To Wealth. He currently writes at Jamesaltucher.com and has released a newsletter, The Altucher Report. Mr. Altucher is the founder of Stockpickr.com, a social network for finance that had millions of unique visitors per month when it was sold to TheStreet.com in 2007. He has written over 200 columns for The Financial Times and has written for TheStreet.com, Forbes, Yahoo Finance, Fidelity.com, and other publications. He was also the founder of a web services firm, Reset Inc, which he sold in 1998, at which time he became a partner at VC firm, 212 Ventures/Investcorp. Mr. Altucher regularly appears on CNBC, Fox News, Fox Business, and CNN Radio, and is also in his spare time a nationally ranked chess master. Mr. Altucher received his BA at Cornell University and attended graduate school for computer science at Carnegie Mellon University. You can follow him on twitter @jaltucher.

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