Why Apple may dump Google off iPhone

16 years ago

“The rift between Apple and Google looks like it could get a whole lot wider. Apple is considering replacing Google as the default search engine on its iPhone with Microsoft’s Bing, according to two people familiar with the matter,” Peter Burrows reports for BusinessWeek. “Discussions between Apple and Microsoft have been going on for weeks, say the sources, who caution that a deal with Microsoft is not imminent and may never be reached.”

“Why would Apple consider replacing the world’s most popular search engine with Microsoft’s Bing? Apple will probably get more money from Microsoft.,” Burrows reports. “But the real advantage of a Bing tie-up for Apple is that it would cut Google off from some of the search data that’s the lifeblood of its business. Google has grabbed 65% of the traditional PC-based search market in large part because it has had far more information about what people are looking for and could use that to refine its search algorithms. If it can’t get the same kind of data as people shift their computing to the iPhone and other mobile devices, Google risks losing its edge in search.”

Burrows reports, “Apple had agreed to make Google’s search the default on the iPhone years ago, when the two companies were on good terms, and as part of that deal Google got access not only to search queries but also GPS data that helped pinpoint where iPhone users were at any given time. That allowed Google to create a virtual map of the U.S. and a real-time view of where people are using their phones. Last year, Apple told Google it wanted to stop sharing location data, say the four sources.”

Burrows reports, “Apple may only be looking [at Microsoft] for a short-term relationship. One source close to the company says it is considering developing its own search technology. ‘If Apple does do a search deal with Microsoft, it’s about buying itself time,’ the person says.”