According to several different sources, Nuance is said to be in negotiations with Apple. Most likely, the negotiations are about further cooperation between the two companies. Apple is already using Nuance’s Dragon NaturallySpeaking engine to power popular applications for Mac OS X and iOS.
It is believed that the new negotiations may have something to do with bringing Dragon NaturallySpeaking technologies to the iPhone. Currently, Nuance offers Dragon Dictation for iPhone, but it is possible that a new partnership between the companies would bring this voice recognition technology natively to iOS.
In order for Apple to create similar technology of its own, the company would not only have to spend a lot of time getting to where Nuance is today, but Nuance also holds key patents for its technology, and is very aggressive in protecting these patents. It is quite obvious why!