Bing to Become iPhone Default Search Engine?
As the rivalry heats up between Apple and Google, Apple has entered talks with Microsoft to replace Google with Bing as the iPhone's default search engine. With Google CEO Eric Schmidt on Apple's board the two companies have partnered in the past, but he is no longer on the board and there is now direct competition between the two giants.
Google's introduction of the Android OS was the first sign that a serious rivalry was in the making. Now Google has introduced the Nexus One, a mobile device that will directly compete with the iPhone in the smart phone market. Apple has pushed back by getting involved in ad placement on its mobile devices, which is Google ad-serving territory. Apple has also recently refused to approve two Google apps including Latitude, which uses GPS data to show users whether any friends are nearby. These discussions with Microsoft are yet another plot to slow Google down. According to an unnamed source familiar with the negotiations, "Apple and Google know the other is their primary enemy... Microsoft is now a pawn in that battle."
The iPhone currently uses Google as its default browser and users must download a Bing application or go to Bing.com if they want to use it. According to Nielsen about 86% of people who use mobile search use Google, compared to 11% Bing. An agreement between Apple and Microsoft could potentially cause a big shift in those numbers, and the stakes are enormous. Google collects revenue from placing ads next to its search results and according to mobile advertising company AdMob, most mobile advertising is viewed on iPhones or iPods. If Bing secures that spot it would gain market share in the rapidly growing mobile search arena. Microsoft could also be pushing to make Bing a choice on Apple's Safari browser for Mac users.
If an agreement is reached it will probably be for the short term. According to another unnamed source familiar with Apple, "If Apple does do a search deal with Microsoft, it's about buying itself time... Apple isn't going to outsource the future."
[via Business Week]
• 
• 
• 
• 
• 
• 
• 
