Analyst: For Nuance, Apple’s new iPhone 5 a mixed bag

“Shares of speech recognition software maker Nuance Communications edged up on Tuesday ahead of Apple’s expected launch of the iPhone 5,” Reinhardt Krause reports for Investor’s Business Daily.

“Shares in Nuance went on a roll in 2011 on speculation its speech technology would be used in Apple’s iPhone 4S, introduced in October,” Krause reports. “While Nuance’s software is widely believed to be part of Apple’s ‘Siri’ voice command system, Nuance reportedly garners fixed licensing fees from Apple, not revenue based on iPhone sales.”

Krause reports, “Apple’s Siri provides artificial intelligence as well as basic speech recognition. ‘For Nuance, we believe there could be some positive reaction to the iPhone 5 and the next version of Siri,’ said Wedbush analyst Scott Sutherland in a report. ‘However, given Apple only uses Nuance for speech recognition and is likely to take share from more meaningful (Nuance) customers such as Samsung and RIM (BlackBerry maker Research in Motion), we see a negative financial impact.'”

Read more in the full article here.


  1. So, is the act of Apple dumping Google Maps considered a negative financial impact?

    Apple may take full control of Siri power, by freeing it from the licensing restraints of Nuance.

    This is an extremely “positive financial move” (a savings) and a responsible direction for a Hardware & Software giant such as Apple.

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