Apple buys Pullstring

Apple agreed to buy Pullstring, a startup that enables the design and publishing of voice apps, as the tech giant seeks to compete more effectively with Amazon and Google in voice empowered apps. A group of former Pixar executives founded Pullstring in 2011 to make interactive voice apps for toys before expanding into Internet of Things (IoT) products.

Pullstring makes software tools for voice apps, and artificial intelligence to power those experiences and toys such as Mattel’s talking Barbie and Thomas the Tank Engine toys. The company was criticized in 2015 for creating “child surveillance devices,” but said its products had security features to protect privacy

Pullstring technology may help Apple to strengthen ties with app creators and gain broader developer support for Siri, which is critical for offering voice-enabled services that will encourage consumers to use its virtual assistant. Apple pioneered voice-enabled technology with the introduction of its Siri virtual assistant more than seven years ago, but the company has fallen behind Amazon and Google in voice-powered platforms like smart speakers that work as hubs for connected homes.

Amazon has a 70% share of the U.S. smart-speaker market with its Echo devices. Google Home trails with 24% of the installed base while Apple's HomePod is a distant third with only 6% of the market. Apple risks losing out on the growing market for IoT devices and services without a stronger presence in smart speakers.