A deal between Apple and Microsoft may mean iPhone owners would automatically get Microsoft's Bing as the main search engine. That means that Google being now the default search engine on the iPhone will be replaced by Bing. Microsoft may also be lobbying to make Bing an alternative on Apple's Safari browser for Mac users. Currently, Mac users can choose either Google or Yahoo search through the Safari browser.
Being the default search engine on the iPhone carries financial benefits for Google, which collects revenue from ads placed alongside its search results and shares a portion of that with Apple. Most mobile advertising now is viewed on Apple's iPhone and iPod touch, according to mobile advertising company AdMob. To clinch the deal, Microsoft may be willing to share a higher portion of its revenue or pay a larger flat annual fee than Google does.
Clinching the coveted default spot on the iPhone would also help Bing gain market share in the quickly growing area of mobile search. Of people who use mobile search, 86% used Google in November, according to the Nielsen Co. Only 11% used Bing.
So, even bigger attack on Google would be Apple building its own search engine.
