What Happens to Apple Inc. If Samsung Buys Nuance?

Rumors broke earlier this week that Samsung  (NASDAQOTH: SSNLF  ) may be interested in acquiring Nuance Communications  (NASDAQ: NUAN  ) . Such a deal would make sense for Samsung, which has been working hard to beef up its software prowess lately in order to complement its hardware strengths. Nuance already powers Samsung's S-Voice feature, along with other devices that use voice recognition. Furthermore, Nuance's core health-care segment could also complement Samsung's medical device business.

Apple  (NASDAQ: AAPL  ) has long used Nuance's voice recognition engine to power Siri. Voice recognition engines are the behind-the-scenes layer that translates sounds into words; then the application software layer interprets that output. Apple likely has the rights to Nuance's engine under a long-term contract, although nothing is known publicly about the relationship. Additionally, Apple acquired U.K.-based Novauris in April, so it could be interested in building its own in-house engine.

Samsung could potentially afford to kill Apple's relationship with Nuance if the deal happens, which differs from the conglomerate's substantial hardware business with Apple. Still, Apple likely has enough visibility to arrange an alternative if need be.

In this segment of Tech Teardown, Erin Kennedy discusses Nuance's rumored sale with Evan Niu, CFA.

(relevant segment begins at 8:24)

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Leaked: Apple's Next Smart Device
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The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

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Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


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