Apple and Microsoft in talks to replace Google with Bing on iPhone?
Could hell freeze over again?
BusinessWeek is reporting that Apple and Microsoft are in talks to replace Google with Bing as the primary search engine on the Apple iPhone. Sources to BusinessWeek claim “talks have been under way for weeks” as the rivalry between Apple and Google intensifies.
This shouldn’t come as a surprise to anyone following the mobile industry as Apple and Google have increasingly become competitors in the mobile front with both companies offering a mobile phone (Nexus One vs iPhone), a mobile phone OS (Android vs iPhone OS), and of course online services (Google Apps vs. Apple’s Mobile Me). As the clashes increase, it’s only natural for Apple to consider other alternatives to Google services with Microsoft ironically now becoming “a pawn in that battle”.
So what’s at stake for Google here? In a phrase – “mobile advertising” or more specifically “mobile eyeballs” which translates to “mobile advertising dollars”.
With the majority of mobile advertising users coming from the iPhone/iPod touch platform, Google would be losing a significant volume of mobile search engine traffic if it were to lose the “default” status. Granted, mobile advertising stills commands a relatively small piece of the overall online Internet advertising industry but this will undoubtedly change as mobile devices become our primary means of interacting with the web.
Don’t think any of this matters to Google? Just look at Google’s own moves in the space. The company has purchased countless mobile related companies including AdMob, GrandCentral etc. Its pushed Android as an open source alternative to the iPhone, Symbian, and of course Windows Mobile in an attempt to ensure Google services remain relevant in the mobile space. It even began selling its own phone directly to T-Mobile customers (albeit to a less than stellar response from the media).
While Microsoft-fanboys might love the idea of Microsoft replacing Google on the iPhone, the win might end up being short-lived as many believe Apple is working on an in-house search engine replacement. As the BusinessWeek report states “Apple isn’t going to outsource the future.”
