Apple, Inc (NASDAQ: AAPL), the technology giant, is not known for its social media. That is all changing with the acquisition of Topsy Labs, Inc, a company known for recording and analyzing all messages exchanged on Twitter (NYSE: TWTR). It mines the data and uses it to graph trends.
Though, the exact reason for the purchase remains a mystery, insiders believe that Apple’s interest in the company may stem from a desire to understand consumers better. Highly successful in selling their physical products, Apple has not shown the same luck with their online services. Services such as iTunes Radio and ICloud are by no means, market dominators, and past blunders like the short-lived Ping service, a social network for music concept.
All sides have been tight-lipped about the purchase. Twitter has not made any public comments about the deal, and neither has Topsy. Apple has confirmed the buy, but said nothing of its intention for the company, leaving many questions.
Topsy Labs, Inc, is a company based in San Francisco, California, and has collected all tweets, since the birth of Twitter in 2006. It is a certified Twitter partner, and was founded by Vipul Ved Prakash in 2007. It has raised over $32M from investors since. Similar companies are startups such as DataSift Inc. and Gnip Inc., who also collect and analyze data.