Apple Buys AlgoTrim
NEW YORK (TheStreet) -- "If you can't beat them, join them." -- Jim Henson
Apple has reportedly acquired AlgoTrim, a Swedish startup that builds codecs and designs solutions to maximize data while minimizing the amount of memory the data uses. The news was first reported byRapidus, a Swedish news service.
Apple responded to TheStreet's inquiry on the purchase. "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans," the company said in an email.
By acquiring AlgoTrim, it will allow Apple to keep the media it delivers to mobile devices, namely through iTunes, or iCloud, at a high quality, will using less memory, or bandwith.
As more people continue to buy smartphones, with smartphones recently outselling feature phones for the first time ever, data compression is important. It will allow Apple to get the most of its iDevices, while keeping power consumption low, something that's always been a problem for smartphones and tablets.
Apple has gone on an acquisition binge as of late, with most of the acquisitions geared towards improving Apple Maps. Apple purchased Locationary and HopStop earlier this year.
It also recently purchased Embark, a Silicon Valley-based company that builds apps that allow users to navigate transit systems in some of the U.S.'s major cities, including New York and Chicago.
Apple shares were higher in early Wednesday trading, gaining 0.86% to $492.79.
--Written by Chris Ciaccia in New York
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