Apple ditching Google Search for Microsoft Bing on iPhone

According to reports , Apple and Microsoft are in talks to replace Google Search with MS Bing as the Default search engine for the iPhone.

BusinessWeek is reporting that Apple is in talks with Microsoft for few weeks regarding the default search engine iPhone . The move comes as a result of the growing rivalry and competetion between Apple and Google.

Now the Nexus One from Google is taking on the Apple iPhone 3GS directly and its obvious that Apple does not want to use a competitor’s product – Google Search

A significant amount of Mobile Search traffic is from Apple iPhone and iPod touch and Google’s income from Mobile Ads might be impacted by the outcome.

CNBC is reporting  that the Microsoft Bing App for iPhone is very successful from the Mobile Search point of view.  It drives more traffic  than from all of Verizon Wireless’s phones.

Microsoft is willing to pay more money to Apple compared to Google for the search ads.

Steve Jobs wants a  Bing Search API where he can integrate search results so deep in the product that user will never have to see the Bing web page and UI

These talks have been going on since October / November 09 .

Apple never saw Google as a Competitor until the rise of Android , Chrome and most recently the Nexus One. Now the relationship has turned bitter . Now we are hearing about the Search but Apple was even considering ditching Google Maps

This is going to be an interesting space to track as Mobile Search volumes are expected to boom in the coming years.