Why Apple may dump Google off iPhone

Apple Online Store“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.”

Read more in the full article here.

MacDailyNews Note: Currently, iPhone and iPod touch users have a choice of built-in search engines within Mobile Safari: Google or Yahoo (Settings>Safari>Search Engine) with Google being “on” by default on new Apple devices.

In addition, there are many Web Search apps available for iPhone and iPod touch. See them all via Apple’s iTunes App Store here.

Mac Safari users can easily install a plug-in such as the free Glims, to add multiple search engine choices to Safari.

[Thanks to MacDailyNews Reader “James W.” for the heads up.]

33 Comments

  1. Burrows implies they no longer are, with his statement,
    “years ago, when the two companies were on good terms”…

    Google is just another competitor, more so nowadays,than previously.
    What is the proof that Apple and Google are no longer on good terms?

  2. Think different.

    Murdoch has been in dispute with Google and is pulling out of the search giant as he moves towards charging for access to his vast news empire. On top of that, Bing has offered Murdoch what Google refuses to – a cut of lucrative ad revenue on Bing news search results.

    As Apple preps its tablet – upon which it will be very, very keen to offer paid access to thousands of Murdoch titles… what will the press baron be insisting upon in the negotiations? In other words… what does Apple stand to gain by dumping Google – and what will it lose by keeping it?

    Having consistancy with the Touch and iPhone tie-ins is just a necessary after thought.

  3. Gotta love all the Bing defenders suddenly popping up ignore Bing’s horrible indexing problems.

    @ Wade Smith – And how many of those Bing results are old, outdated pages? Rather a lot, I’ll wager. Quantity ≠ quality.

    @ Twenty Benson – It’s “think different”, not “think stupid”. And those news websites will commit suicide if they actually follow through on that asinine plan. Stop pretending Bing is bigger than it really is.

  4. Gabriel, who’s being stupid?

    Jobs will not have the slightest hesitation in doing a ‘Netscape’ on Google. The CEO famously dumped the superior browser for Microsoft IE when it was in Apple’s strategic interest to do so.

    All news sites will be subscription in the near future. It will actually be suicide NOT to – as the titles have long been bleeding money as freebies. It has been necessary to give free access whilst the new mechanics of online newspapers were built, developed, road-tested and enriched with content… and to attract a sizable online regular readership. As these news sites mature, that stage is nearing its end and pricing will be introduced.

    News International sees this future, Apple sees this future, Microsoft (Bing) sees this future… Google doesn’t. I would even go so far as to say Google’s very recent bullying attempt to lever open the huge market in China smacks of desperation from the company – as it is aware of the writing on the wall… or, on the Apple iPad.

  5. I love how MDN will blindly snap and bite any any company who poses a challenge to Apple. If it’s not Google, it’s Palm, or Amazon, or whoever else happens to make a great product. Competition is apparently only a good idea when it doesn’t hurt Apple.

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