Business Week is running quite an interesting story regarding ongoing talks between Apple and Microsoft that would make Bing as the default search engine on the iPhone, replacing Google. Citing sources familiar to the matter, the said talks have been going on for a week now. This is interesting because it not only shows the growing rivalry between Google and Apple but also because Apple and Microsoft used to be rivals, or remains to be rivals in the computer market.
Of course we all know what triggered Apple’s decision to replace Google with Bing as the iPhone’s default search engine. Google’s entry to the smartphone market with the Nexus One. The Nexus One phone and Google’s total business model for it including the Android OS, despite its shortcomings and flaws, have been hailed as one of the worthiest iPhone killer if not worthiest opponent.
Obviously, Apple did not like Google’s latest foray and will not just take it sitting down. Hence, the for its first salvo, replacing the iPhone’s search engine into Bing.
But would Microsoft agree this deal? And would this deal be on a long-term basis or is Apple just buying some time before it comes up with its own mobile search engine?
The answers to these questions depend on how far the Apple – Microsoft deal would go. There are many kinks to be ironed out if such deal is to push through. More particularly on revenue sharing derived from mobile search ads.
For Apple is purely about retaliating against Google. For Microsoft, it’s more of giving its Bing search engine a boost in terms of possible increase usage and mobile search market share. Both companies are sure to benefit from this deal. But did Apple even considered the loyal iPhone users who prefer Google as their phone’s search engine?
Let’s see what will come up from this deal. Who knows it might work to Google’s advantage?
