Bing is all set to replace Google as the default search engine on Apple iPhones, if reports are to be believed. This could further intensify the battle between Apple and Google, which are already battling it out handset-wise. Apple reportedly plans to make Microsoft’s Bing the default search engine on the iPhone's Safari Web browser on Macs and PCs.

The iPhone currently offers Google as default and Yahoo! as an option. It also comes with default applications for Google services such as YouTube and Google Maps. However, recently Google's Voice iPhone application was barred entry into the iTunes App Store.

Though Microsoft is the biggest gainer as the deal would increase its marketshare in the area of mobile searches in which Google holds 86 percent share (according to Nielsen Co), it cannot compete with YouTube because it recently shut down its Soapbox video site. With regard to maps, Microsoft recently launched improvements to Bing Maps including Streetside which is similar to Google Street View and other new features.

This move may have some minor financial implications on Google. AdMob, a mobile advertising network that Google recently offered to buy for $750 million in stock, says that the iPhone and iPod Touch are the two leading devices for US-based mobile search queries. So, unless iPhone and iPod Touch users manually switch their browser's default search engine back to Google, the search giant will probably lose some ground in mobile searches.

Since Google is currently the default search engine for iPhone, any change may result in customers facing inconvenience. But if the deal goes through, then iPhone and iPod Touch users will actually have greater choice when it comes to in-browser search engines.