MSFT in talks with Apple for iPhone placement - outbid Google?

MSFT in talks with Apple for iPhone placement - outbid Google?

Summary: Businessweek reports that Bing might replace Google as default search engine on iPhone...

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Businessweek reports that Microsoft might replace Google on the iPhone: Apple, Microsoft Discuss Giving Bing Top iPhone Billing

Apple (AAPL) is in talks with Microsoft (MSFT) to replace Google (GOOG) as the default search engine on its iPhone, according to two people familiar with the matter. The talks have been under way for weeks, say the people, who asked not to be named because the details have not been made public.

The discussions reflect the accelerating rivalry between Apple and Google, now the main provider of Web search on the iPhone.

If the deal happens its because Microsoft agreed to outbid Google for prime position on the iPhone. Microsoft might even replace Google on Safari. And why not pay Mozilla for the default search engine spot too?

It's not because of rivalry.

Microsoft is a larger rival than Google. It has a rival OS, it has Zune a potent rival to the iPod; it has a mobile OS that is on many cell phones; it has many competing applications.

If the deal happens its because of money not rivalry.

Topics: Apple, Google, Hardware, iPhone, Microsoft, Mobility, Smartphones

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16 comments
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  • It's ALWAYS about money

    Got news for you -it's always about money.

    Perhaps you may think Google was there because of their great common shared vision to improve humanity and bring light to the dark places of the world, but in fact Google was there because of money.

    Perhaps not in the form of a direct payment, but bottom line is that Google is there because it was the best revenue option for Apple - either because of direct revenue, or revenue from offering a more useful service, kickbacks, engineering partnership, whatever.

    If Bing ends up being there, it's because Apple thinks it can make more money doing it. Period. The only subjective comment worth making is that Bing must be acceptable enough that Apple doesn't think it will harm the perception of the iPhone as a useful device (or MS is paying them so much they'll take the negative hit.) But knowing Apple and Jobs, it's unlikely MS could pay enough money for Apple to harm their own image.
    hickum
    • I agree. This is business. Sometimes...

      Emotions get in the way and supersede the share holders but most of the time these companies are not being altruistic but taking care of business which in my estimation is what they should do as long as they are ethical about it.
      DevGuy_z
    • RE: MSFT in talks with Apple for iPhone placement - outbid Google?

      @hickum
      Thank you very much! <a href="http://www.replicawatchesbest.org">replica watches</a> :)
      yantangseo
  • RE: MSFT in talks with Apple for iPhone placement - outbid Google?

    Ouch
    jimk_z
  • rivals

    "It has a rival OS"
    microsoft has a dominant os by a far margin. no
    competition here. apple can grow its mac business for
    years to come without microsoft even noticing it.

    "it has Zune a potent rival to the iPo"
    you are kidding. zune market share? 3%?

    "it has a mobile OS that is on many cell phones"
    WAS on many cell phones. winmo is dead. market share
    falling like a rock, selling less units every quarter. at last
    count (q3 2009): 7,9% market share (down from 14% a year
    ago)

    you are clueless as always.
    bannedfromzdnetagain
  • Default? Like they did with Verizon? NO!!!

    All Verizon Wireless will have worthless Bing as the only search engine. On
    Blackberry's there is now NO other option thanks to Microsoft. They made Bing
    the 'default' and only search engine.
    jbach67
  • RE: MSFT in talks with Apple for iPhone placement - outbid Google?

    I would broadly agree with the analysis in this article, though I cannot imagine the executives responsible for the decision being able to ignore the rivalry angle.
    Tim Acheson
  • Doubt it's going to happen....

    Firstly as smart-phones like the iPhone becomes more and more prominent, so does the default search and search provider. Much like the default browser on WIn desktops which made IE dominant, MS apparently knows default search in Mobile is also a key stake and seem to be fighting hard to not let Google run away with it (see Bing App already on iPhones).

    But I just don't see Apple changing the default to Bing. May as well change the default Google Maps also while they're at it, which is another key stake. Not going to happen! If there's negotiations it's merely to add Bing as an additional choice on the iPhone along with Google and Yahoo.

    Apple is in a good position here with both MS and Google fighting for their positions. Who knows maybe that's also the reason you don't have multi-touch on Google's phones (default Apps), because of the agreement of Google being the default search and Maps on iPhone(?).
    dave95.
    • You know what they say...

      Money talks. But I agree, talk about strange bedfellows!

      I'd be very surprised to see Bing on any apple product. I would think there would be a backlash - it's a rather lackluster search engine if you ask me.

      The only thing I'd disagree on is maps - live maps have come a long way. I'd use them over google maps any day of the week.
      crazydanr@...
  • Zune - A potent rival for iPod..?

    The zune's a potent rival for my doorstop. Or maybe my paperweight... Sure is versatile that Zune lol
    Joe-Taylor-7
  • Stevie is upset with Google over the Android phones...

    so he wants to cut off google's cash flow.
    mrlinux
    • Stevie is upset with Google over the Android phones...

      The real sum up, mrlinux.
      This is between apples & googles.
      ms is just a referee.........................lol!
      tonious@...
  • RE: MSFT in talks with Apple for iPhone placement - outbid Google?

    Its because Bing has better search results than Google. Such a change is welcomed by all.
    Loverock Davidson
    • Sometimes I wonder...

      if you really believe everything you say, or you say it all tongue-in-cheek.

      Sometimes you are ridiculous, sometimes you are hilarious, and sometimes you are ridiculously hilarious.

      Gotta Love the the Loverock.
      PlayFair
      • I'm just saying what everyone else is thinking

        And the best part is that its completely true.
        Loverock Davidson
  • RE: MSFT in talks with Apple for iPhone placement - outbid Google?

    Microsoft and Apple have business relationships going back to the start of their respective organizations. They've been "in bed with one another" before on multiple occasions. It never *lasts*, but it happens. Because sometimes, it makes strategic sense for them to partner up against some external threat.

    Apple and Microsoft are both behind Google in the trend to recreate their technology companies as advertising companies. It makes logical sense for them pool their resources to try and shave off some of that lead.

    It is all about money, but not in payment for placement. It is all about ad revenue becoming the largest source of revenue for former technology companies.
    dcolbert@...