NEW YORK (Reuters) - Apple Inc is talking to Microsoft Corp about stepping in as the default search engine on the iPhone, replacing Google Inc, according to report on Bloomberg's web site.
Talks between MICROSOFT (MSFT.NQ)and Apple have been going on for weeks, the article said, citing two people familiar with the matter. Negotiations might not conclude quickly and might still fall apart, the article said.
GOOGLE (GOOG.NQ)is the default search engine on Apple's desktop and laptop computers.
Microsoft's Bing search engine is trying to wrest market share from Google, the leader in Internet search.
Once seen as allies against Microsoft's dominance, Google and Apple compete on a number of fronts, including operating systems and the fast-growing smartphone market.
Google has been gaining strong support from handset makers and operators with its Android mobile operating system.
Apple is also working on ways to manage ads displayed on its mobile devices, a move that would challenge Google's advertising business, the article said.
"Apple sees Android as a competitive platform driving competitive devices and it recognizes that Microsoft is desperate to gain search market share," said Clayton Moran, an analyst at Benchmark.
"Microsoft I'm sure will give Apple favorable economics so strategically and financially it could make good sense for Apple," said Moran.
Silicon Valley giants Google and Apple have lived in friendly coexistence for years as each grew to be leaders in their respective arenas.
But Google Chief Executive Eric Schmidt resigned from the board of the iPhone and Mac computer maker in August, as Google increased its presence in Apple's markets for operating systems, browsers and applications.
Ties between Apple and Google run deep. Google director Ann Mather was chief financial officer at animation company Pixar, while Apple founder Steve Jobs was CEO. Former U.S. Vice President Al Gore is an Apple board member and also a senior adviser to Google.
Apple, Microsoft and Google were not immediately available to comment.
(Reporting by Sinead Carew and Franklin Paul, writing by Yinka Adegoke. Editing by Derek Caney and Robert MacMillan)
