Apple swapping Google for Bing as iPhone's default search engine?

The iPhone is about to see a shuffle of its applications: Apple and Microsoft are in talks (together!) to do away with Google as the default search engine on Apple's smartphone and replace it with Bing.

BusinessWeek is reporting that this deal has been undergoing talks for weeks now amid a brewing feud between the Cupertino company and its Mountain View-based neighbor. Something to do with the Nexus One being a direct competitor to the iPhone 3GS.

Maybe Apple and Microsoft are trying to take on the Android OS-based smartphone market? (Or is it because of a little bit of Android-envy?)

I quite like Bing when it comes to searching for airfares (it was formerly known as Farecast), but I haven't used the Microsoft search engine for much else. As an iPhone user, I'm not sure yet if I would tell the difference, but the Bing app (pictured above) is certainly better looking than the Google one.