Now Apple wants a cut of Office 365 subscriptions also


I guess we now know what is delaying Office for iOS. Apparently it is not just SkyDrive, but Apple also wants a 30% cut of Office 365 subscriptions sold through the iOS Office app.

Apparently Microsoft feels 30% is not reasonable, especially for the productivity benefits it brings to iOS, and also as the subscriptions would also include desktop access. Apple disagrees, and is sticking to their 30% guns.

In a statement to AllthingsD company spokesman Tom Neumayr  said:

“Apple provides customers and developers the largest selection and safest way to discover apps with our curated App Store. We’ve designed our rules to be fair and consistent for every developer — free apps and services are distributed for free, paid apps and services provide a revenue share to Apple. We’ve paid out over 6.5 billion dollars to our developer community who have created over 700,000 apps.”

Microsoft has not commented yet, but we expect if Surface tablets gain any significant traction in enterprise due to Office inclusion Apple may change their tune very rapidly.

  • rsgx

    I know it sounds ridiculous, but just don’t release Office on the iPad.

    Make it irresistable to users look for productivity, make it better on other platforms, make it the best on your own and don’t make it for iOS, period.

    I know I wouldn’t.

    However, Apple is just applying the same rule to MS as they do to everyone else. It’s as simple as that.

    • Frostie

      This is what I think they’re doing.

      1) release MS Office for iOS

      1.5) wait for iOS users to bond with MS Office on their iDevices

      2) wait until apple wants a piece of the revenue

      3) withdraw MS Office products from iOS

      4) iOS uses get left out and jump to windows ecosystem to fulfil MS Office cravings

      • Lewis McCrary

        Exactly what I’d do. Wet their whistle and get them loving it and then pull it.

    • guesttt999

      Absolutely my thinking as well. No need to bring native Office experience to iFad/iOScrap. Make it available on all other platforms and also spend time and energy in promoting and distributing Surface instead!

    • General Bison

      Or keep the app, sell subscriptions through a website not IAPs.

      • rsgx

        Doesn’t work that way. Thave have to offer the same functionality in the app as they do elsewhere.

        • VHMP01

          Better yet, just do a Web App that runs on Safari and forget the App Store all together! Crappier service for iOS, best App for W8, WP8 and Android. Done!

          • rsgx

            I like it.

    • J A

      MS should just forget Apple products altogether, their users are coming over at least for MS Office, especially when Surface Pro hits the market, which should immediately take hold in the enterprise. It’s like saying MS should charge for commercial apps people run on Windows, which they don’t do. Apple is ridiculous, these are the sort of companies the DoJ should go after but have yet to.

  • Michael Prince

    Apple really need to turn a blind-eye to this one. Microsoft has probably spent a lot of money developing the app, I just can’t see them giving up 30% to Apple.

  • inyourbase

    This means diddly squat to me. LOVE my Surface, and LOVE Office on it. Let the Apple faithful use iWork. If you listen to the vocal fruity supporters, it’s apparently as good as Office (and of course, the rest of us know this statement to be utter BS)

  • Smitty

    Do they require 30% from other paid for apps and subscription services? I was unaware spotify was giving apple 30% of their fees.

    • José Villaró

      Everything that is sold through an app on iOS pays the apple fee. That was the battle Apple had with Amazon about allowing purchases of content on the kindle iOS app for example.

  • Ef Jay

    People have and are still buying ipads without office, so making it available probably won’t get that many sales, however making it available only takes sales away from MS’s other products like the Surface and WP. Paying apple 30% on top of that seems to me a stupid move all round.

  • Jessica

    screw apple. Office is the only thing that makes ios relevant at work.

  • Rupert

    Apple is high on ganja.

  • chris

    Microsoft do not put Office or Skydrive on Apple if they want to act in that way!!!!!

    • VHMP01

      Nor Xbox, Skype, Nokia Maps, Bing, etc.

  • JohnCz apple .. rotten to the core.

  • phantomssv

    say yes to 30% of each Skydrive and office purchase but in exchange ask for 30% of each iTunes and iCloud purchase made on a windows device…. that should work out well for Microsoft i would think.

    • Gavin Tom

      my thoughts exactly. But evil as MS has been in the past, now always shares patents or licenses them to realistically anyone who wants them. Apple on the other hand just wants handouts.

  • blur

    does apple pay MS for purchases on itunes store bought on a windows PC?

    • Brian

      They would if Apple made an iTunes for RT.

  • Truthhz

    Microsoft should take Apple to court. Even if MS loses, they can generate good publicity for the Microsoft App Store for other developers.

    • Brian

      A judge would probably dismiss it on the merits (summary judgement) since Apple has done nothing wrong (their store, their rules – Microsoft doesn’t have to play if they don’t want to).

  • David

    Simple: Office for iOS is a mistake, Microsoft should not do it.

  • grs_dev

    Its simple. Release viewers. No editing. To access subscriptions, must use browser…

    • Croc Ography

      After reading all the comments I believe this is the answer. Great suggestion!

    • Gavin Tom

      we already have that on Skydrive. But the problem there is Apple wants a piece of Skydrive too haha.

      • VHMP01

        So? MS just needs Office Apps accessed through Safari!!! Or did you even try to understand it? Anything MS releases for iDevices should be Web Based! NO Apps what so ever through App Store, on the other hand, W8 and Android get all the great Apps!

  • disqustingtard

    Fuck Apple!! Microsoft, please stop playing nice, you need to be a complete arsehole to that gay company. Withdraw your products and work on your own ecosystem.

  • jimski27

    Increase the price 99% (handling fee) and pay Apple their damn 30%. iFolks are used to paying more for the same thing. Use the increased revenue to promote WP and Surface. Works for me.

  • Kruegerman

    Fuck Apple.

  • duk3togo

    Simple Solution: Give Apple their 30% then charge them 30% for iTunes downloads on every PC.

  • General Bison

    Simple Solution: Do not sell subscriptions through the app

    • Gavin Tom

      they don’t obviousl.y it would require you to go to a website and subscribe. But apple is saying that because it requires a subscription, they should be entitled to 30% of the fee, because it’s “their platform”.

  • Gavin Tom

    There we go, now we know why it’s taking so long. In my ideal world MS should just pull it and promote the Surface, kill Apple for being so greedy.

  • Chris Salter

    I agree in that M/S should concentrate their efforts on WP and Android, Rotten Apple will soon realise how much they need office integration
    Apple is simply trying to throw its weight around, Microsoft cant lose face in this as any apple user will only have to google it to find out exactly why they cant have office on their device
    M/S 1 – 0 Apple

  • Chris Salter

    And if M/S really want to p**s apple off then just enhance the web based version for apple,
    Apple cant do a thing if its web based and not an actual app.
    I know it wont really solve much but it would certainly turn the apple brown :)

  • Chris Salter

    But the most amusing part of it all is that Apple must have been scratching their heads really hard to find a way to attack Microsoft, lets face it, they’ve had a chew at everyone else
    But in this, it will be its OWN customer base that loses out,
    I have a new innovative concept for Apple “Fight in the marketplace” not the back alleys…..

  • JerkFace

    All this means is no businesses will ever pick iPad for field computers. What dumbasses!

  • xma1e

    Office on iOS is a bad move for MS because it is one of the strongest reasons for buying Windows over Apple.

  • redtidal

    While pretty much everyone agrees that iPad is more of a toy than productivity device, Microsoft decide to lend a hand and shoot themselves in the feet.

    And Apple said, “I would love to see you die. So, you can use my gun. But, you have to pay for that bullet.”

    Meanwhile, Google is sharpening knife on the side.