An Apple laptop sits in a podium with the Google logo during a Google special event on September 8, 2010 in San Francisco, Calif.
An Apple laptop sits in a podium with the Google logo during a Google special event on September 8, 2010 in San Francisco, Calif. - 
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Jeremy Hobson: Now to another fire that's raging in the bay area -- a symbolic one between Apple and Google. Apple has announced that Google's YouTube Application won't be included in the next version of software for the iPhone and iPad. YouTube has been a core app since the iPhone debuted in 2007.

For more on this, let's bring in Marketplace Tech Report host John Moe. He's with us live. Good morning.

John Moe: Good morning.

Hobson: So John, why is Apple doing this?

Moe: The official reason is that the license that lets the YouTube app be on the Apple operating system has expired. The real reason: Apple hates Google. Google means the Android operating system for phones, which is Apple's biggest rival. And Apple has traditionally taken the point of view that Android phones are rip-offs of iPhones. So there's a lot of acrimony there.

There's also a lot of Google that has been baked into the iPhone since the iPhone launched in 2007. The default search engine is Google, Google Maps... we're starting to see that fall away bit by bit. Maps first, and who knows -- maybe the search engine somewhere down the line.

Hobson: Well what's changing though? I mean, is the Android just becoming so successful that it's really something that's scaring Apple at this point?

Moe: It's probably part of that, yeah. Apple's also gearing up for the launch of this new operating system. There's probably a new iPhone on the way, maybe a new mini iPad coming soon. There's a big patent case, also, against Samsung in court right now -- which makes Android devices -- which is ultimately about Android and ultimately about Google. So there's a lot of bad blood.

Hobson: Wouldn't a mini iPad just be an iPhone?

Moe: You should work in tech, you're starting to get the hang of this.

Hobson: Well, what does this mean for iPhone and iPad users?

Moe: Well, not much. I mean, you'll still be able to watch YouTube videos. Apple says Google is making its own YouTube app to replace this one. That one will probably have more ads on it, because it'll be designed by Google. So more delays, but ultimately it'll probably work better as an app because Google will be making it, instead of Apple grudgingly going along.

Hobson: John Moe, host of Marketplace Tech Report, thanks so much.

Moe: Thanks Jeremy.

Follow John Moe at @johnmoe