In a question-and answer session with Search Engine Land at this week's Search Marketing Expo West in Santa Clara, Ballmer said Microsoft is taking a go-slow approach in the search-engine wars.
"I don't think most people do things with the goal of being second," Ballmer said. "And yet, I think, a fair degree of realism is required about where the current state of affairs is; even when you pool the volumes from us and from Yahoo!, we've got a lot of work to do (against Google), and it's a really competitive market."
Ballmer said he still hopes Bing will replace Google someday. But he was coy in talking about whether Bing would become the default search engine on iPhone, saying only, "What we want to do is make sure we do a very good job with Bing on the iPhone."
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