According to Businessweek, Apple is in talks with Microsoft to drop Google search as the default on Mobile Safari on the iPhone and iPod Touch. The move would place Bing, Microsoft's recently rebranded search, at the top of the mobile browser. The reason would be twofold. One: Microsoft would offer more money for users who click on ads from search and two, because Google's Android is a much bigger threat to Apple's iPhone than anything Microsoft can muster.
Interestingly, Apple may also add Bing as an option in Desktop Safari as well, according to their sources. The deal, if finalized, may not