How Apple Will Benefit From Twitter's Firehose

Last week, Apple (NASDAQ: AAPL  ) acquired social media data analytics firm Topsy for a reported $200 million. Topsy specializes in analyzing Twitter data, and is one of the customers of Twitter's data licensing business, where it sells access to its "Firehose." Apple has failed it almost all of its attempts to be social, so it's leaving social media to the experts.

While Apple usually tends to acquire small companies that may help add features to future devices, this acquisition is clearly geared toward data. Compared to some of its heavyweight rivals, Apple has fewer ways to gather valuable customer data. Apple knows a lot about content trends thanks to iTunes, but this acquisition can broaden its view of what's trending. That information can be used to bolster Siri, iAd, iTunes, and a slew of other services.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's latest acquisition with Evan Niu, CFA, our tech and telecom bureau chief.

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