Microsoft has a “high” chance of landing a search deal with Apple for the iPhone, according to a note put out by Collins Stewart analyst Sandeep Aggarwal.
Sandeep met with Microsoft executives on Wednesday. He says the company is “laser focused” on search.
While Microsoft wouldn’t confirm or deny iPhone talks, it did tell Sandeep, “for [the] right economics Microsoft would like to win the Apple search deal.” That gave Sandeep confidence that Microsoft will make a bid for the iPhone.
Yesterday we reported that Apple is getting over $100 million a year from Google in a revenue share deal. Considering Microsoft is willing to pay billions to grow its search share, getting on the iPhone might be worth it.
Even if it doesn’t get on the iPhone, it could hurt Google by raising the price of deal.