Apple search engine

Another unsubstantiated rumor: 

Apple building search engine, TechCrunch hears. “We’ve received multiple (if thin) reports that Apple is working on a search engine of some sort. At first glance, the rumors make sense. Apple’s Safari browser has 6-7% market share, and currently uses Google as the search engine for both the standard and iPhone/iPod versions (unlike other browsers, you don’t have a choice)…

1. Is Apple willing to forgo $XXX million that Google compensates Apple for making it the default search engine on Safari and on the iPhone?

2. Spotlight is a “search engine” – could it be that Apple is merely creating a spotlight for the iPhone?

I think #2 is more likely. On the other hand, search is a commodity, search usability is a premium.