Bing to be default search engine in iPhone OS 4.0?

Rumor has it that the next iPhone OS could be the default search engine. BusinessWeek is reporting that Apple is in talks with Microsoft to have Bing replace Google as the default search engine.

It's becoming increasingly clear that Apple's main rival is not Microsoft, but Google. The Nexus One competes directly with the iPhone; Apple isallowing Google to use Lala, for now; and with Apple's purchase of Quattro Wireless and Google's acquisition of AdMob it seems each company is gearing to directly compete with the other in the mobile ad market. Microsoft is now a pawn in that battle,' says one of BusinessWeek's sources who is familiar with the matter.

As per the BusinessWeek article, clinching the coveted default spot on the iPhone would also help Bing gain market share in the quickly growing area of mobile search. 86% of mobile searches belonged to Google in November, according to the Nielsen Co. Only 11% belonged to Bing.

Microsoft also has a great Bing iPhone app [iTunes] that might be worth checking out as well.

While the Bing discussions have been going on for weeks, the source notes that the search switch may never materialize. Interestingly, the article also states that Microsoft may also be lobbying to make Bing an alternative on Apple's Safari browser for Mac users. Despite this, even if the Bing deal goes through, it may not last long. BusinessWeek's source says Apple has a 'skunk works' looking at a search offering of its own, and believes that 'if Apple does do a search deal with Microsoft, it's about buying itself time.' In other words, Apple sees search in its future.