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Analyst: Keeping Microsoft Office off the Apple iPad costs Microsoft $2.5 billion a year

Posted: , by Alan F.

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Analyst: Keeping Microsoft Office off the Apple iPad costs Microsoft $2.5 billion a year
So Microsoft could have a new CEO soon announced in company insider Satya Nadella. What can he do to improve Microsoft's status in the mobile world? While 90 out of 100 PCs run Windows, only 4 out of 100 smartphones are powered by Windows Phone, and Windows is on even fewer tablets. There is no question that the platform gained some momentum in 2013. First, it was the ability of the cameras on its high-end models to take quality photos in low-light conditions. Then, it was the ability of entry-level models like the Nokia Lumia 520/521 to grab market share in emerging markets and in the U.S.

Dave Smith, an analyst at Gartner, when asked if he had any advice for Nadella if he does gets the CEO job at Microsoft, said that "I would advise him (Nadella) to take a fresh look at mobile, or bring in some talent who really understands the space." But there are many Wall Streeters who think that Microsoft made a huge mistake in buying Nokia's Devices and Services business. That deal has yet to close, and already many analysts believe that the best track for the Redmond based firm is to forget hardware and concentrate on software.

One analyst says that by keeping Microsoft Office off the Apple iPad, Microsoft is losing $2.5 billion in additional revenue. Why do this? Microsoft believes that keeping Office off the iPad will increase demand for its own Microsoft Surface slates from businesses who could use the Office software. Microsoft doesn't have to drop hardware to gather in this cash, but the real question is if the Surface can ever grab enough share away from the iPad.

"He (Nadella) is the right person to drive safe, right down the middle of the fairway, and continue Microsoft's strengths. What we don't know is will Nadella help with the consumer revival, or with the mobile revival. Mobile is an open hole in his background."-Rajeev Chand, managing director and head of research, Rutberg & Co.

source: Reuters

25 Comments
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posted on 04 Feb 2014, 01:41 1

1. Finalflash (Posts: 1711; Member since: 23 Jul 2013)


Stupid MS, always focusing away from their strengths. They'll never have Apple's hardware success because they lack the number of equivalent zombies. They are hemorrhaging their own software because of their hardware attempts, sacrificing the sure thing for a distant maybe. Now again they are trying to catch up and throwing money at the problem because that always fixed it for them in the past... Good luck.

posted on 04 Feb 2014, 01:48 1

2. Skoms (Posts: 118; Member since: 03 Feb 2014)


Why microsoft? I think you are like a little evil. This is why i dont like microsoft.

Hampering the IT evolution.

posted on 04 Feb 2014, 02:00 1

3. Hammerfest (Posts: 369; Member since: 12 May 2012)


Id love Office on my ANDROID SmartPhone or Tablet, or EMU enviroment...

posted on 04 Feb 2014, 05:29

11. tadaa (Posts: 243; Member since: 18 Apr 2013)


there is office 365 on android

posted on 04 Feb 2014, 02:31 3

4. SleepingOz (unregistered)


Does it really matter at this point? There're many other office apps that are on par, if not better out there.. The only loser here is MS.

posted on 04 Feb 2014, 04:03 7

8. tedkord (Posts: 4713; Member since: 17 Jun 2009)


There's nothing out there that comes close to Excel. Tell yourself there is if it helps you sleep, but you're only deluding yourself.

posted on 04 Feb 2014, 05:41

12. papss (unregistered)


Don't feed the troll. His opinion has little weight with anyone

posted on 05 Feb 2014, 04:00

25. reckless562 (Posts: 730; Member since: 09 Sep 2013)


troll??? do u even know waht a real spreadsheet program like excel can do??!?
obviously u dont. time to go back to the intro to microsoft office class at ur local community college. no disrespect to community colleges....or you (tryna b nice) but since these programs evolve, it would be benifical to anyone to brush up on their skills. i hated learning M$ Access, but it IS usefull. so now i know wassup, n u should too b4 u call ppl a troll

posted on 04 Feb 2014, 02:50

5. tigermcm (Posts: 712; Member since: 02 Sep 2009)


Office is probably the only thing they are not passing along to other OSs. I have WP and i get tired of Microsoft products being made available for android or iOS first before WP. i remember when Skype was being updated last on WP which made no sense to me

posted on 04 Feb 2014, 02:51

6. NokiaFTW (Posts: 2000; Member since: 24 Oct 2012)


I think MS should avail Office on the iPad since they don't have any real beef with Apple and it will be profitable for them. However, keeping Office off Android would be better since Google don't give a damn about WP & Win8.

posted on 04 Feb 2014, 04:05 3

9. tedkord (Posts: 4713; Member since: 17 Jun 2009)


Trust me, if WP or the surface starts gaining some real traction, you'll see some real beef.

posted on 04 Feb 2014, 05:43 3

13. NokiaFTW (Posts: 2000; Member since: 24 Oct 2012)


WP already outsells the iPhone in 24 markets.

posted on 04 Feb 2014, 06:14

16. ihavenoname (Posts: 1377; Member since: 18 Aug 2013)


5S is best selling device in most markets and has huge sales, that's enough for Apple. Overall, they sell more than Lumias. And unlike 5S and 5C, which are high-end devices, 520 is low end and cheap. And Surface, basicly it sells well only in USA.

posted on 04 Feb 2014, 08:51

18. NokiaFTW (Posts: 2000; Member since: 24 Oct 2012)


The iPhone 5S is the best selling smartphone only in the West (only the US probably). But in countries like China, India, and most European countries, its nowhere even in the top 10.

posted on 04 Feb 2014, 09:49

20. tigermcm (Posts: 712; Member since: 02 Sep 2009)


uh where did you get your info from? last I checked(here) there were a few articles where WP was taking the spotlight and spanking iPhone in a number of markets

posted on 04 Feb 2014, 03:44 4

7. Ant34 (Posts: 193; Member since: 10 Aug 2013)


I haven't used Microsoft office in years. I use Libre Office on my laptop and Kingsoft Office and Quick Office on Android all of which are free.

posted on 04 Feb 2014, 04:59 4

10. microsoftnokiawin (Posts: 966; Member since: 30 Mar 2012)


yeah but you're not a heavy user of office apps ! otherwise you'd know that MS office is superior !

posted on 04 Feb 2014, 05:45 3

15. papss (unregistered)


Agreed. As a professional I wouldn't use anything other than office. There are no equals period.

posted on 04 Feb 2014, 11:16

21. nasznjoka (Posts: 339; Member since: 05 Oct 2012)


whol lied to you? your shiipness drives you nuts, What does office has that is not on libre? or do you know what's libre?

posted on 04 Feb 2014, 20:43

23. wolfsaviorzx (unregistered)


Open Office is fine. Word is much more stable though. I wish microsoft had some kind of "Platimum Membership". Where you pay like 160 bucks a year and get skype Premium/xboxLiveGold/XboxMusic/Office365 and whatever else services they make.

posted on 04 Feb 2014, 08:24 1

17. Awalker (Posts: 281; Member since: 15 Aug 2013)


I think free alternatives will do the trick for most users.

posted on 04 Feb 2014, 05:44 4

14. NokiaFTW (Posts: 2000; Member since: 24 Oct 2012)


Microsoft Office is still the greatest. Nothing comes close to it.

posted on 04 Feb 2014, 08:52

19. Mike_L.13 (Posts: 20; Member since: 15 Nov 2013)


So true. how is the functionality of the MS office suite on windows phone? once they figure out to maximize some of those apps for use on WP I don't see how every ms office power user in the world wouldn't want a windows phone

posted on 04 Feb 2014, 18:36

22. qxavierus (Posts: 25; Member since: 20 Mar 2012)


I'm not Office power user, but I suspect that people think MS Office is greatest just because they don't know other Office suites. I have friends that panic when they can't do simple things with OpenOffice for example, and are declaring MS Office as the best. While the truth is, they just don't know how to work with OpenOffice.

posted on 04 Feb 2014, 20:45 1

24. wolfsaviorzx (unregistered)


I've used most office suites. Office is the best on windows, but OpenOffice is fine for most users. Businesses wouldn't use anything besides Real Office though.

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