A Chinese news website is reporting that Apple plans to introduce Baidu as a search engine option for all Apple devices that use its mobile operating system in China by April.

The unconfirmed report by Sina Technology News cites "knowledgeable sources." It also raises the possibility that Apple (AAPL) might make Baidu (BIDU) the default search engine for all of its iPads, iPhones and other mobile devices in the Chinese market. Google (GOOG) search is currently featured on these Apple devices.

PCMag.com, which picked up the Sina Technology story, said an Apple spokesperson declined to comment about the report.

If true, the news might be a further sign that Apple is cutting its reliance on No. 1 search engine Google in various online and mobile services. An Apple tilt toward Baidu would also undercut Google's presence in China's search market. Apple and Google have been stepping up their competition in mobile and other online services. Google and the Chinese government have battled over censorship and privacy issues for several years.

Apple reportedly will include search and other online services from local Chinese companies in the next release of its OS X "Mountain Lion" operating system for Macintosh computers. The Chinese services providers include Baidu, Tencent, Sina (SINA) and Youku (YOKU) .

Baidu dominates China's search market with a nearly 80% market share. Google is said to have 17%. China has an estimated 1 billion cellphone users and 550 million Web surfers, making it a lucrative opportunity for foreign companies like Apple that can expand their beachhead.

Apple shares were up 1.3% in midday trading, near 614.55, yet another new all-time high. Baidu shares were up 1.2% near 152.60, a nearly eight-month high.