Apple in talks with Microsoft to replace Google as default search engine on iPhone OS 4

According to a report on BusinessWeek. Apple is in talks with Microsoft to replace the default search engine Google on its phones with Microsoft’s BING.

This came as a surprise as Apple might just work hand in hand to ward off a potential giant Google. It is also becoming clear that Google is the common enemy.

The Nexus One competes directly with the iPhone; Apple is allowing Google to use Lala, for now; and with Apple’s purchase of Quattro Wireless and Google’s acquisition of AdMob it seems each company is gearing to directly compete with the other in the mobile ad market. “Apple and Google know the other is their primary enemy. Microsoft is now a pawn in that battle,” says one of BusinessWeek’s sources who is familiar with the matter.

But this isn’t just about Apple and Google. As the BusinessWeek article points out, clinching the coveted default spot on the iPhone would also help Bing gain market share in the quickly growing area of mobile search. 86% of mobile searches belonged to Google in November, according to the Nielsen Co. Only 11% belonged to Bing.

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