Apple Discussing Investment Stake in Twitter Worth Millions of Dollars

Apple Discussing Investment Stake in Twitter Worth Millions of Dollars

Nowadays, social media has become a major resource for attracting people all over the web and is a strong marketing tool for any business giant. Apple has become the most powerful Smartphone and Tablet selling company since their first launch of iPhone in 2007. The company has really become a business giant but still there is a need for improvement as they have many other competitors in market.

Apple Twitter

Keeping in view all these facts, Apple has taken second largest social media company ‘Twitter’ into account. Apple has carried out some efforts to get into social media by talking with Twitter. Apple must have realized that importance of social media plays a pivotal role in marketing of products at almost all places of the World. On the other hand social media companies also have the idea that how much amount of time is spent by the people in searching for mobile devices, applications, games, movies, music, reading of latest reviews etc. There is a need to direct this search of people and give them a proper direction. This direction can only be given to consumers if there is a good partnership of company with Twitter.

So far Apple is planning to make an investment around hundreds of millions of dollars, that could value Twitter more than $10 billion, up from an $8.4 billion valuation last year. Still there is no guarantee that both companies are confirmed to join hand together as the agreement process is still going on. Apparently things seem to be moving in a positive direction and we may see a partnership much more stronger than that of Facebook and Google. Apple has not made any good friends in the World of social media so far and was lurking like a lonely huge ship in the Ocean but now they have realized the importance. Apple’s relations with Facebook are also not very good due to several strains. Facebook is also on similar lines with Microsoft who has a small stake in market also. There is no question that Google could have come up with Apple  as they both are arch rivals. Google has its own Android related products and use of  Google Plus social network for marketing of competitor products seems insane.

This situation has left Apple with 2 options, one is to make their own social network and other one is to join hands with some top  network for their marketing. The consideration of first option may not be a good idea as this will divert the attention of company from their prime task. “Apple doesn’t have to own a social network,” Timothy D. Cook, Apple’s chief executive, said at a recent technology conference. “But does Apple need to be social? Yes.”

This investment will not make a much of financial difference but still it can turn out to be one of the most important of Cook’s career as  CEO of Apple. Apple has much more resources as compared to Twitter with 117 billion in liquid investments while Twitter with more than $8 billion. The assets of Apple are sufficient in terms of quantity and they quietly agreed to buy a mobile security company worth $356 million on Friday.

The result of this deal will definitely be fruitful for both companies but Apple will get more exposure to social media trends. This partnership will also clear the way for Twitter’s promotion into Apple’s products. What makes a social network more important is not only the number of registered users but it is actually the number of active users. Twitter has more than 140 million active monthly users which is a great figure. Twitter is based on small messaging system which are sent to the followers in packets called tweets. People whoa re connected actively to this network follow each other and send updates of their daily life to all friends. the system is somewhat similar to updating of status on Facebook profile.The use of social media is done by a common man which allows easy access of marketing company to the normal people without involving any other medium. Potential of social media is much more for the reason they are visited by huge number of people daily. There are 1000s of updates received on social networks every minute. So the partnership between companies with them is imminent. We have the example of Facebook, Zynga joined hands.

At the same time this should also be very clear that Twitter is not running after money. Dick Costolo, CEO Twitter said, the company had “truckloads of money in the bank.” Truckloads of money means more than $600 million cash. Twitter is expected to pursue a public offering within coming couple of years, whether their deal with Apple is materialized or not. The most important thing which may keep this partnership intact is that Unlike Google or Facebook as already explained, Twitter has no plans to compete with Apple in phone business at least. similarly, Apple has no future plans to make a social network, so once the interests do not collide with each other, the deals can proceed forward.

Spokesmen of Apple and Twitter both companies refused to companies on rumors. It looks like that ties between the Twitter and Apple already strong as the Chief Financial Officer of Twitter Ali Rowghani, joined in 2010 after working  directly with Steve Jobs, co-founder of the Apple in Pixar Animation Studios. So he is going to be the key person in cementing the gaps between two companies.

Apple’s deals with Twitter, began after their relationship with Facebook were no more cordial. Apple was interested in starting ping services with Facebook during 2010 but they could prove to be fruitful. According to Mr Steve Jobs, who was CEO of Apple at that time, the deal with Facebook could not be materialized due to Facebook’s demands, “onerous terms that we could not agree to”, He said.

The terms between Apple and Twitter can be judged with the fact that official application for Twitter was instantly released on iOS but it took months development in case of Facebook App. Last year App for iPad was released whereas iPad was released in year 2010. Recently, Twitter features have also been incorporated in Apple operating systems for computers and ad services.

Facebook has began their own “App Center” which will help them in collection of huge mobile revenue much more than what they collect through advertising which is also likely to compete Apple. There are concerns that Apple may lag behind in mobile software as the competition is increasing day by day with lack of social features. Apple has shown themselves to others that software can make or break hardware sales. People buy Apple products because of huge Apps bank on App Store.