AllThingsD: Apple and Microsoft Spat is Over Office for iOS Revenue, Not Just SkyDrive

Posted in Apple, Apple News, iOS on 12/12/2012 by Chris Hauk


Contrary to earlier reports, Microsoft and Apple are not just fighting over a 30% cut of storage sales through the iOS version of Microsoft’s SkyDrive app. The companies are also wrangling over revenue Microsoft will get as part of its Office 365 subscription service.

AllThingsD, via MacRumors:

Office has long been a cash cow for Microsoft and extending the platform to iOS will undoubtedly fatten it further. It will also bring significant benefits to Apple’s mobile platform, ones for which Microsoft feels it is owed a discount on that 30 percent cut that Apple would otherwise command on Office 365 subscriptions sold to iOS users through it. The apps are just part of a subscription that includes desktop access.

Microsoft has been pushing Apple to take a cut in its normal 70/30 split it lays out in its developer license agreement. Apple, prepare to be shocked, has politely refused. No report on how much less the folks from Redmond want the Cupertino family to take, but Apple is taking a “rules is rules” stance and is refusing to budge on the split.

Apple is reportedly telling Microsoft the same thing they’ve told other developers in the past, if one of your customers comes through our gateway, we wet our beak to the tune of 30%.

Sounds as if Apple is playing fair, all developers, big or small give Apple its 30% vig.

Office for iOS has been rumored several times during the past year, but seems to be finally nearing fruition. It was reported yesterday that Microsoft has leaked mentions of ‘Office Mobile for iPhone’, ‘Excel for iPad’, and ‘PowerPoint for iPad’ on its support site.


Chris Hauk

MacTrast Senior Editor, and self-described "magnificent bastard," Chris Hauk owns Phoenix Rising Services and writes for everyone's favorite "bad movie" website, Big Bad Drive-In.

His first Apple product was an iPod Classic 9 years ago, and he has since added a MacBook Pro, a number of iPads, iPhones, and multiple Apple TVs to his collection.

He lives somewhere in the deep Southern part of America. Yes, he has to pump in both sunshine and the Internet.