BusinessWeek reports that Apple and Microsoft are in talks and have been for several weeks to bring Bing to the iPhone as the default search engine, replacing Google.
According to BusinessWeek Apple and Google now consider each other primary enemies and that "Microsoft is now a pawn in that battle."
BusinessWeek is bolstered by an additional report from the Wall Street Journal who states that "Apple was in serious discussions with Microsoft Corp. to incorporate its Bing search engine into the iPhone as the default search and map technologies."
More interestingly the Wall Street Journal includes the following in its last paragraph:
Even if it’s consummated, an Apple-Bing deal may prove short-lived. The person familiar with Apple’s thinking 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.” Given the importance of search and its tie to mobile advertising — and the iPhone maker’s desire to slow Google — “Apple isn’t going to outsource the future.”
Towards the end of last year Apple also acquired mapping company PlaceBase.