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Apple Mulling Mobile Search Switch to Microsoft Bing

Business makes strange bedfellows, as evidenced by yesterday's report by BusinessWeek that Apple is mulling over a partnership with longtime rival Microsoft to make its Bing search engine the default option on iPhones. The possibility of this move highlights the growing tension between Apple and Google -- especially as Google has begun moving into the mobile phone market as a direct competitor of the iPhone.

"Apple and Google know the other is their primary enemy," an anonymous source told BusinessWeek. "Microsoft is now a pawn in that battle." Apple is also working on ways to manage ad placement on its mobile devices, a move that would encroach on Google's ad-serving business, the person says.

The deal would not only mean more exposure for the fledgling Bing search engine but also a potential for greater ad revenue. According to mobile advertising company AdMob, the majority of mobile advertising today is viewed on Apple's iPhone and iPod Touch, and being able to have its ads show up by default when iPhone and iPod Touch users search the Internet could bring in millions of dollars.

However, the deal would not be without danger. ZDNet.com blogger Garrett Rogers notes that Apple runs the risk of alienating their users by switching to a less-popular search engine, a move that could backfire and drive customers to Google-enabled phones.

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