Edible Apple

In an interesting post on CNBC, Jim Goldman highlights some fascinating nuggets of information about recent reports that Apple is considering making Bing the default search engine on the iPhone, at the obvious expense of Google.

Citing a source familiar with the ongoing “search dynamics” between Microsoft and Apple, Goldman gives us a little bit of background as to why Microsoft’s eyes are so wide when it comes to getting on the iPhone.

When Microsoft released its Bing app for iPhone, it became the company’s best mobile search by volume of queries, better than the traffic Verizon Wireless drives to Microsoft, and Bing is already the default the search engine across that network.

And in an interesting piece of Silicon Valley Gossip, the same source writes that “Jobs hates Eric.” Which, if you know anything about Jobs’ temperament, is par for the course when you consider the growing rivarly between the two companies in a wide array of products and services. Hell, we wouldn’t be surprised if Jobs viewed Schmidt, a former Apple board member, as a sneaky and backstabbing traitor.

Moving along, the article notes that Apple receives a kickback every time an iPhone users clicks on an ad from a resulting search query on Google. So in order to grease the wheels, so to speak, Microsoft is reportedly offering to give Apple a bigger chunk of that ad revenue in exchange for the vaunted spot on the iPhone.

But doesn’t Jobs hate Microsoft?

No, not really. He just thinks they have no taste. Jobs noted long ago (when Microsoft bailed Apple out with a $150 million investment) that it was imperative for Mac fans to get over the notion that “for Apple to win, Microsoft has to lose.” Jobs may not be a huge Microsoft fan, but he’s smart enough to not let those feelings cloud his better judgment.

… this source tells me that Jobs may not like Microsoft products, but that doesn’t mean he’s “anti-Microsoft.”

… Steve understands that Bing will give him a Search API where he can integrate search results deeper and deeper in the product without having to see the Bing web page and user-interface,” says this source.

Lastly, Goldman’s source notes that Apple isn’t working on a search engine of its own, which contradicts the original BusinessWeek story that first made mention of the negotiations between Apple and Microsoft.