Analyst: Microsoft could bring in $2.5 billion in 2014 by selling an iOS version of Microsoft Office

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Analyst: Microsoft could bring in $2.5 billion in 2014 by selling an iOS version of Microsoft Office
Adam Holt, an analyst with Morgan Stanley, took to his calculator to compute that Microsoft could add another $2.5 billion in revenue in 2014 by selling a version of Microsoft Office for the Apple iPad. The analyst comes to this figure by using a 30 to 40% attach rate for Apple iPad users which would be larger than the 10% to 15% rate that Windows users generate for Office.

Holt figures that the price for the suite would be $60 for those who use the Apple manufactured slate. Assuming that there would be 200 million iPads sold by 2014, the analyst fills out the variables with a 30% attach rate and a $60 price tag. Using fingers and toes, that adds up to $2.5 billion in revenue for Redmond based Microsoft. As far back as November 2011, there was speculation that Microsoft was working on a version of the Office suite for the iPad, although nothing has ever been released from Microsoft's camp.

Because of the lack of a precise input on the iPad, and no dedicated files system, a version of the Microsoft Office Suite for the tablet would have to be less functional than the version sold for PCs. Such a watered down version of the suite would also have to come down in price dramatically meaning that Holt's estimate might be very much overly optimistic.

source: electronisa

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