Apple is in talks with Microsoft to replace Google as the default search engine on the iPhone, according to a BusinessWeek report.
The talks have been under way for weeks, say their sources. The discussions may be the result of an ever increasing rivalry between Google and Apple. Since the first iPhone launched, Google has announced its own browser, operating system, mobile phone platform, and now its very own phone.
"Apple and Google know the other is their primary enemy," says one of the people, who's familiar with Apple's thinking. "Microsoft is now a pawn in that battle." Apple is also working on ways to manage ad placement on its mobile devices, a move that would encroach on Google's ad-serving business, the person says.
If Bing makes it onto the iPhone, Microsoft would gain ad revenue and some desperately needed market share. Apple would decrease its dependence on Google and possibly get some profit sharing in the deal.
Another person familiar with Apple's thinking tells BusinessWeek that, Apple has a "skunk works" looking at a search offering of its own, and believes that "if Apple does do a search deal with Microsoft, it's about buying itself time." Jobs may be looking to slow Google down while Apple works on a search and advertising product of their own. "Apple isn't going to outsource the future."
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The talks have been under way for weeks, say their sources. The discussions may be the result of an ever increasing rivalry between Google and Apple. Since the first iPhone launched, Google has announced its own browser, operating system, mobile phone platform, and now its very own phone.
"Apple and Google know the other is their primary enemy," says one of the people, who's familiar with Apple's thinking. "Microsoft is now a pawn in that battle." Apple is also working on ways to manage ad placement on its mobile devices, a move that would encroach on Google's ad-serving business, the person says.
If Bing makes it onto the iPhone, Microsoft would gain ad revenue and some desperately needed market share. Apple would decrease its dependence on Google and possibly get some profit sharing in the deal.
Another person familiar with Apple's thinking tells BusinessWeek that, Apple has a "skunk works" looking at a search offering of its own, and believes that "if Apple does do a search deal with Microsoft, it's about buying itself time." Jobs may be looking to slow Google down while Apple works on a search and advertising product of their own. "Apple isn't going to outsource the future."
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