by , 11:20 AM EDT, September 8th, 2006 - Digg This

American Technology Research analyst Shaw Wu reviewed Apple's patent filing for a multi-functional handheld device, and said it is likely "the fundamental basis and technology behind Apple's cell phone efforts." The device described in the patent filing can potentially include cell phone features, a PDA, a music player, GPS, digital camera, remote control functions, and more.

Mr. Wu stated "We remain upbeat on Apple's prospects in building a material cell phone business given its strong brand name, loyal customer base, and unique user experience helped by its Click Wheel technology and end-to-end business model."

If Apple gains 1 percent of the cell phone market, that could translate into an additional US$2 billion for the company. Based on Apple's current track record, Mr. Wu expects that is a real possibility.

American Technology Research is maintaining its "Buy" rating for Apple stock, and a target price at $91. Apple stock is currently trading at $72.33, down 0.47 (0.65%).