With relations between Apple and Google growing strained, a new set of rumors places Apple as having gone into discussions with Microsoft towards making Microsoft’s Bing search engine the default for the iPhone.
According to Businessweek, a source close to the story offered the following: “Though Microsoft did not confirm or deny any chatters on the likelihood of Microsoft wining Apple search deal for iPhone, [Microsoft executive] Mr. Apter told us that for right economics Microsoft would like to win the Apple search deal.”
In a recent note, Collins Stewart analyst Sandeep Aggarwal, also commented: “In our view, Apple search deal can be strategically very significant win for Microsoft not only because of Google and Apple’s history of working together but also because Microsoft has been lagging behind in terms of making in roads on fast growing mobile Internet market.”
As mentioned yesterday, Apple’s inclusion of the Google search engine on the iPhone platform nets the company about US$100 million a year from Google as part of a revenue-sharing deal, making it less likely Apple would want to develop its own search engine.