In what would be a major coup for Microsoft's fledgling search engine Bing, the corporation is reported to have begun negotiations with Apple over replacing Google as the default search engine on the best-selling iPhone. 

According to a report on Bloomberg.com, two sources have told it that several weeks of ongoing talks have been held between Apple and Microsoft, but they are still said to be at an early stage, with expectations that they may have some way to go before any conclusion is in sight. 

Microsoft’s Bing search engine is trying to wrest market share from Google, the leader in Internet search, and analyst James McQuivey of Forrester Research Inc said in this respect, “such a deal would be good for Apple.” 

It has a long way to go, however, if it is to topple Google in the mobile search market: figures compiled in November 2009 showed that, of people who use their phones to search the Web, 86 per cent used Google, compared with 11 per cent for Bing, according to New York-based Nielsen. 

Once seen as allies against Microsoft’s dominance, Google and Apple are now going head-to-head in several arenas, including operating systems and the fast-growing smartphone market. 

Apple is also working on ways to manage ads displayed on its mobile devices, a move that would challenge Google’s advertising business, the Bloomberg story said.