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By Alexei Oreskovic

SAN FRANCISCO, Aug 6 (Reuters) – Apple’s new version of its

iPhone and iPad software will not include a pre-loaded app for

Google’s video website, YouTube, Apple said on Monday.

YouTube is one of the most popular destinations on the

Internet, with more than 800 million unique monthly visitors who

stream 4 billion videos a day.

The move was the latest sign of the growing rivalry between

the technology companies the once were closely aligned but now

are vying for supremacy in the fast-growing mobile computing

market.

Earlier this year, Apple said it would dump Google’s mapping

software from its mobile devices.

“Apple and Google are the mobile operating systems for the

future and this is where the battleground is going to lie,” said

Needham & Co analyst Kerry Rice.

“If it’s going to be a two-horse race, you certainly don’t

want to give the other horse any kind of lead,” he said.

Google, the world’s No.1 Web search engine, is also the

maker of the most popular smartphone software with its Android

operating system. In May, Google closed the $12.5 billion

acquisition of Motorola Mobility, setting the stage for Google

to more tightly integrate its smartphone software and hardware

and mount a more direct challenge to Apple’s iPhone.

Apple said in a statement on Monday that its license to

include the YouTube app in the iOS operating system “has ended.”

Apple noted that “customers can use YouTube in the Safari

browser and Google is working on a new YouTube app to be on the

app store.”

An Apple spokeswoman declined to comment on whether the

company’s YouTube license included any financial terms, or on

whether Apple planned to replace YouTube with another

pre-installed online video app from a different company.

YouTube has been among a handful of apps that come

pre-loaded onto the screens of Apple’s mobile devices since the

original iPhone was introduced in 2007.

But the app, which was actually built by Apple using

YouTube’s standards, did not appear to be as full-featured as

YouTube’s own website: the YouTube app does not appear to

feature any advertising, and the catalog of available music

videos lacks many of the titles found on the website.

Former Google CEO Eric Schmidt once sat on Apple’s board of

directors, but the relationship between the two companies has

frayed. Apple’s co-founder, the late Steve Jobs, was quoted as

saying he was willing to go “thermonuclear” on the search

leader, after it decided to position Android against the iPhone.

News of YouTube’s disappearance from Apple’s mobile software

came as Apple released a new test version on Monday of the iOS 6

software, which for the first time did not include the YouTube

app. The final version of iOS 6 is due for release sometime in

the Fall.

(Reporting By Alexei Oreskovic with additional reporting by

Gerry Shih; editing by Kenneth Barry and David Gregorio)