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Video of Google’s Liquid Galaxy!

Businessweek reports that Apple and Microsoft are currently in negotiations to replace Google as the default search engine on the iPhone with Microsoft’s Bing.com. The talks have reportedly been underway for weeks.

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As part of its cover story this week on the Apple-Google rivalry, BusinessWeek reports that Apple is seriously looking at ways to revolutionize mobile advertising, leveraging its recent acquisition of Quattro Wireless to go head-to-head to with the Google/AdMob conglomeration.
According to a source familiar with his thinking, Jobs has recognized that “mobile ads suck” and that improving that situation will make Apple even harder to beat.

Not one to shy away from a challenge, particularly when it offends his aesthetic sensibilities, Jobs and his lieutenants have discussed ways to overhaul mobile advertising in the same way they had revolutionized music players and phones, say two sources close to the company. The sources did not reveal specific plans at Apple but say there are several possible ad approaches.

Read the rest of this story at MacRumors