MacNN | Microsoft balks at Apple's 30 percent iOS Office cut
Mac News Network View: Standard | Headlines | Categorized | Slim
Mac News Network
Mac News iPod News Reviews Forums
 

Desktop Headlines
Microsoft balks at Apple's 30 percent iOS Office cut
Tuesday, December 11, 2012 @ 5:54pm

Even as Microsoft and Apple spar over Microsoft's SkyDrive iOS app, the two companies are also at loggerheads over the future of the forthcoming iOS version of Microsoft's popular Office productivity suite. Reports have it that the two companies disagree over whether Apple should charge its standard 30 percent commission on Office 365 subscriptions that would be sold through Microsoft Office for iOS. Apple is said to be unwilling to negotiate a more lenient split for Microsoft, while the details of Microsoft's position remain unknown.



According to AllThingsD Apple seems unwilling to negotiate a different commission rate, even for a software giant such as Microsoft. Microsoft's Office suite, despite increasing competition from other options, remains the dominant productivity suite in the world, as well as a perennial cash generator for Redmond. Office 365, which Microsoft would sell as an in-app purchase, is a subscription product that extends the productivity suite over desktop, cloud, and mobile platforms. Conceivably, giving Apple a 30 percent cut of Office 365 originating on iOS devices could result in Microsoft continuing to pay a yearly commission on those subscriptions to Apple, even if the customer purchasing the subscription no longer accessed the service from an iOS device. Bringing Office to Apple's iOS and Google's Android platform could serve to generate ongoing revenues for Microsoft in the new computing era, an era in which Microsoft has been struggling to catch up. The Redmond giant, though, would likely be reluctant to sacrifice 30 percent of the proceeds from Office subscriptions as a toll to enter Apple's platform. Bringing Office to Apple's platform would likely only strengthen the position of iOS devices in the growing Bring-Your-Own-Device trend, as it would make them even more compatible with the standard enterprise productivity suite. Apple, though, has reportedly been adhering to its developer license and unwilling to budge. As Apple controls the iOS platform, the company decides who can sell what on the most lucrative mobile operating system. AllThingsD's sources say that the disagreement over Apple's commission has bloomed into a considerable argument between the two companies, one with no immediate end apparent.

Comments on this Article
Print Friendly Version
Email to a Friend
Add MacNN to Your RSS Feeds
Buy from the Apple Store


Related Stories:

Today's MacNN Stories:

  • Samsung shutting down ChatOn cross-platform messaging service in 2015 - 7:12 AM EST
  • Hands On: Photon Flash Player for iPad (iOS) - 7:08 AM EST
  • Uber agrees with Portland council to suspend service for three months - 6:04 AM EST
  • Hottest Apple products see improved supply for final Xmas push - 4:13 AM EST
  • Misfortune Cookie exploit endangers 12 million routers - 3:06 AM EST
  • Hands On: Snapselect photo management app (OS X) - 2:03 AM EST
  • Analysis: Title II regulation, with forbearance, the best path forward - 12:18 AM EST

    Today's iPodNN Stories:
  • Google posts response to leaked Sony 'Project Goliath' emails - 4:41 AM EST
  • Plaintiffs in Google antitrust lawsuit required to submit more details - 11:13 PM EST
  • Interview fallout continues: actors complain, Team America taken down - 7:35 PM EST
  • Intel processors rumored to appear in two Lenovo smartphone launches - 3:20 PM EST
  • ICANN servers accessed following 'spear phishing' attack - 7:09 AM EST
  • No comments posted on this story yet. Please post yours.
    Your Comments
    In order to post comments, you must be a registered member of the MacNN Forums and logged in. Please login with your MacNN Forums username and password.

    MacNN Forums Login:

    MacNN Forums Password:

    Not a member of the MacNN forums? Register now for free.