Purchasers of the newest iPhone 5 will be the first to notice the change that will affect all future iPad, iPhone and iPod touch users.
Commenting on the increasing rivalry between the two companies, Yankee Group analyst Carl Howe said the move is to be seen as "two companies agreeing they just don't want to work together anymore".
YouTube has been one of Apple's core applications since 2007, when the first iPhone was released.
Apple sued Google's main Android partner, Samsung Electronics, in 2011 for infringing patents on its mobile devices and has been engaged in a back-and-forth legal battle with its competitor ever since.
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