Microsoft Bing search deal for Apple iPhone is high, WSJ

Collins Stewart analyst Sandeep Aggarwal writes that the likelihood of Microsoft notching a search deal with Apple on the iPhone is high. The topic came up from during his meeting with a member of Microsoft’s search team. Here’s part of his research note published Friday: “Though Microsoft didn’t confirm or deny any chatters on the […]

Collins Stewart analyst Sandeep Aggarwal writes that the likelihood of Microsoft notching a search deal with Apple on the iPhone is high. The topic came up from during his meeting with a member of Microsoft’s search team. Here’s part of his research note published Friday: “Though Microsoft didn’t confirm or deny any chatters on the likelihood of Microsoft wining Apple search deal for iPhone, Mr. Apter told us that for [the] right economics Microsoft would like to win the Apple search deal … Apple search deal can be strategically very significant win for Microsoft not only because of Google and Apple’s history of working together but also because Microsoft has been lagging behind in terms of making in roads on fast growing mobile Internet market,” reports WSJ. Microsoft has already been paying large sums to boost Bing's market share -- with "traffic acquisition costs". The company's efforts have been paying off in higher market share, now more than 11 percent in the U.S., according to comScore. But so far that higher market share hasn't translated into bigger profits in the division, with the loss actually widening last quarter.