As competition between Amazon and Apple in the mobile devices market continues to grow, the online retailer has purchased a voice-to-text company called Yap.
A new filing with the U.S. Securities and Exchange Commission discovered by The Atlantic reveals that Amazon's acquisition of Yap was completed in September. The filing does not specifically name Amazon, but lists "Dion Acquisition Sub," headquartered out of an Amazon-owned building in Seattle, Wash.
Yap offered a consumer-level voicemail-to-text service in private beta, but it was the company's proprietary intellectual property that helped it raise $6.5 million in venture capital in 2008. Yap is based out of Charlotte, N.C., and the service was discontinued in October following the apparent acquisition by Amazon.
Apple acquired Siri, which previously made an iPhone application, in April of 2010 for a rumored $200 million. Now found on the iPhone 4S, Siri allows users to speak to it in natural language to gather information or accomplish complex tasks, like composing an e-mail or creating a calendar event.
While the Siri feature is driven by technology acquired by Apple, the iPhone 4S-exclusive voice recognition software is also believed to incorporate intellectual property from Nuance Communications, makers of Dragon NaturallySpeaking. Neither Apple nor Nuance have confirmed that Nuance technology is utilized in Siri.
Amazon's interest in voice recognition technology comes as the company is prepared to launch its own color touchscreen tablet, the Kindle Fire, which will go on sale next week at a price of $199, or less than half of Apple's entry-level $499 iPad.
While Apple sells devices like the iPhone and iPad with high margins and supports them with an ecosystem of content through iTunes and the App Store, Amazon's entrance into the portable hardware business with devices like the Kindle Fire employs a very different approach. Instead of making money on hardware sales, Amazon aims to tie customers into its own ecosystem of buying products through its online storefront.
Amazon admitted to investors late last month that the impending launch of the Kindle Fire could pose a threat to its future profits. One estimate issued in September suggested that Amazon is poised to lose $50 for each Kindle Fire it sells.