Apple is currently in talks with rival Microsoft to replace Google with Bing as its default search engine on the iPhone, according to two sources talking to BusinessWeek. The deal could also see a small dent to Google’s profits from mobile search, as it currently makes money from showing advertising. However, in order for Microsoft to take over from Google, as BusinessWeek notes, it would have to give Apple more money than what Google pays.
“Apple and Google know the other is their primary enemy,” one of the people sourced said. “Microsoft is now a pawn in the battle.”
The increasing rivalry between Google and Apple could be the main factor why Apple is looking at ditching Google, especially when both parties now compete in mobile advertising and mobile phones. As well, Apple had rejected two Google applications – Voice and Latitude – from the App Store.