Just because they sell devices now, does not mean they can't or won't start selling other stuff such as services (they already provide iTunes which is more of a service). Also they used to be a Computer company which turned in to a Devices + Computer. Their just spreading their wings a bit further.
Regarding your comment about IP, I doubt they do have any kind of protection, I mean their technology is trivial at best. But the value of Twitter lies within it's user base and adoption level, that momentum is hard to beat.
I am not a big fan of Twitter or Apple, but I can definitely see a interesting potential with the two combined (imagine integrated twitter in ipod and other wireless devices). iTweet?
Re:Apple in talks to buy Twitter for $700m
by mikedouglas on Tuesday May 05, 2009 @08:25PM
(#594953)
There is a difference between applying your core competencies to different markets, and just expanding. Apple has been good at limiting their growth to the former. When they do expand into unfamiliar areas (like with iTunes), they make sure they contribute to the bottom line (through increased iPod/iPhone sales).
There are already good Twitter applications for both the Mac and the iPhone. Apple gains nothing, and loses $700 million.
Does Twitter have some IP protection preventing somebody coming along and doing it again? If not, I can't see Apple buying a brand-name.