Bing to replace Google on the iPhone?

In 2003, when Apple did the unimaginable and decided to make iTunes for Windows, they ran a poster campaign saying ‘Hell Froze Over’. It looks like another Cold day in Hell (no pun intended) could be around the corner. BusinessWeek has reported that Apple and Microsoft may be in talks to close a deal that could result in Bing replacing Google as the default search engine on the iPhone. It does not end there, Bing could find its way to Safari too.

Is Apple V/S Google battle becoming more fierce?

Ever since Eric Schmidt resigned from Apple’s Board citing conflict of interest and Apple rejected the Google Voice app for iPhones, a battle has been brewing between the two tech giants. With the release of the Android OS and now the Nexus One, Google, in many ways is in direct competition with Apple. Apple is also said to be working on ways to manage the placement of ads on their mobile devices, a move which could impact Google main source of revenue, ads! With both companies now willing to tread on each others toes and hurt the other directly, this could be just the beginning of a very fierce war.

Will it really be a ‘Cold Day in Hell’ for Google?

According to mobile advertising company, AdMob, most mobile ads are viewed on Apple’s iPhone and iPod Touch. Losing the default spot will definitely result in some loss of market share in mobile search for Google. But the Google faithful are likely to switch back to Google anyway, by either using the Web or downloading the Google Search App. So while Google might not lose much directly, Apple is making its intent pretty clear. While calling it a Cold Day in Hell maybe a tad dramatic this is definitely something that Google should be wary of.

What it would to for Microsoft

According to figures released by Nielsen Co. Bing has around 11% of the mobile search market in comparison to Google’s 86%. They might definitely see some improvement in that figure. The nature of Google and Apple’s current revenue sharing model for searches on Apple devices is unknown. It is likely that Microsoft could be offering Apple a larger percentage or a higher annual fee. Unlike in 2003 when Apple needed the deal with Microsoft, this deal clearly signals that Apple now looks at Google as the Main Competition. A sign of the decreasing relevance of Big Brother? Maybe not, with a search deal already in place to add Bing to Yahoo pages. Microsoft seems destined, although inorganically, to make up some ground on Google in the search wars.

What’s in it for Apple?

Sources, close to Apple have been quoted as saying that Apple has a project to develop a search engine of its own. This deal is probably just a way to slow Google down and buy itself some time.

Well whether it is that, or a case of the two old boys ganging up on the new kid on the block, or simple economics with Microsoft offering to pay more. The Tech Wars just got more interesting!!