Microsoft wants Apple to take a smaller cut on in-app sales of Office 365 subscriptions

Microsoft wants Apple to take a smaller cut on in-app sales of Office 365 subscriptions
Microsoft and Apple are having a little disagreement related to the rumored Microsoft Office for iOS, an application that seemingly is on its way. First, Apple has decided to deny Microsoft the opportunity to update its cloud based storage system, SkyDrive for iOS. The Redmond based software giant has already updated its Android application, but Apple has refused to accept it's rival's request to update the iOS flavored app because of a disagreement between the two on whether or not Apple deserves the 30% cut it receives on in-app purchases.

Apple gets 30% of in-app revenue

Apple gets 30% of in-app revenue

According to those with inside knowledge of the bickering between the two companies, it is not the 30% of the SkyDrive commissions for larger storage space that Microsoft and Apple are fighting over. Apparently, the fight revolves around the 30% of Office 365 subscription fees that Apple is fighting for. With Microsoft Office for iOS expected to launch early next year, the app is only going to allow users to read documents. Those who want to be able to edit documents using the Office for iOS app will have to subscribe to Office 365 and Microsoft apparently expects a discount on the 30% cut that Apple normally asks for. Microsoft isn't in favor of the 70/30 revenue split and Apple won't budge.

Microsoft expects Apple to give it a discount for the privilege of letting Apple iPhone users use Office on its smartphone. Anyone who knows Apple can already figure out the Cupertino based firm's position on this. Apple has made an official statement on its feelings about revenue sharing on apps and if Microsoft responds, we will let you know.


source: AllThingsD

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28 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

iWonder if Apple is trying to make iTunes do more than break even? Getting iGreedy, Apple, eh?

11. htc_prep

Posts: 303; Member since: Oct 09, 2009

The question is. Which the article doesnt state Is, is Apple's standard recovery fee from all developers 30% or is it this "special'' rate because it is Microsoft?

17. Hemlocke unregistered

The standard rate for all developers on iOS is 30%. Apple is high, but their store, their rules.

29. anywherehome

Posts: 971; Member since: Dec 13, 2011

I whish Apple all google apps are paid ;)

15. networkdood

Posts: 6330; Member since: Mar 31, 2010

I am sure that APPLE is way beyond break even with the iTunes. What I hate is when I purchase a movie that comes with a digital copy it is usually only for itunes. That is changing now that UltraViolet is becoming more prevalent.

16. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

The last article I saw (back around Sept/Oct) said they were breaking even and just wanting iTunes to drive iToy revenues.

20. MeoCao unregistered

Office 365 on other platforms than WP is simply to keep Office relevant and it should not deserve special treatment. But I do think 30% fee is to high and it should be 10% only for all platforms iOS, Android and WP, after all developers do not earn much at the moment.

2. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Well this is a shocker! I do hope they can come to terms so apple customers can benefit from a real office suite.

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Why would Apple want to take a lesser cut? Once you check into the Hotel (iTunes), you can never leave....

10. dorianb

Posts: 617; Member since: Oct 24, 2012

Ha. you win the interweb for the day

3. EspHack

Posts: 70; Member since: Sep 04, 2012

lol apple should think it twice, what happens is they have nothing to offer for the WP store and yet they are giving troubles to ms for helping them at keeping some guys using iphone instead of switching to WP in favor of office support

5. amiaq

Posts: 509; Member since: Jun 30, 2012

iHate Apple even more nowadays.

8. darkkjedii

Posts: 30678; Member since: Feb 05, 2011

Since u only got one thumbs up. I'll make it to, just so u can feel better

19. TROLL

Posts: 4851; Member since: Apr 13, 2012

Hate isn't the word, more like war, like Steve blwjb said he wants Andriod dead, but look what happend, no he's dead, rotflmfao'

24. bucky

Posts: 3771; Member since: Sep 30, 2009

You take this stuff a little too seriously.

6. pongkie

Posts: 663; Member since: Aug 20, 2011

forget apple put more on android and windows

9. windroid unregistered

Somehow tired of Apple imposing its rules to the rest of the world...

12. redmd

Posts: 1872; Member since: Oct 26, 2011

just buy android and your fine if productivity is what you're looking for.

14. networkdood

Posts: 6330; Member since: Mar 31, 2010

What I have works great and it was free on Amazon one time (at band camp), and then really cheap on Play store during a sale.

13. networkdood

Posts: 6330; Member since: Mar 31, 2010

700k apps - of which 200k have never been downloaded... and many of the remaining 500k are tablet only...

30. anywherehome

Posts: 971; Member since: Dec 13, 2011

600K max once downloaded......by its developer

18. papss unregistered

Apple is complete garbage...as Im tying on my iPad... I'm soon to sell it for a surface.. I just can't stand them as a whole

23. therealestmc

Posts: 679; Member since: Jul 23, 2012

Why would you sell the iPad and get a Surface with a crappy display? Nexus 10 is better.

21. hanapupu

Posts: 16; Member since: Dec 03, 2012

We’ve paid out over 6.5 billion dollars to our developer community who have created over 700,000 apps."-Tom Neumayr, Apple spokesman How much have they "steal" from "sitting around percentage"

26. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I think the $6.5 B represents total payout from day 1 to when the statement was made.

32. papss unregistered

There are a few reasons.. Firstly I have an xbox360, WP8 second reason is the durability. Nexus has everything but it looks cheap and less durably (typical with Sammy products). Ecosystem is important to me

33. Stuntman

Posts: 843; Member since: Aug 01, 2011

This will be an interesting dispute. How would Apple feel if their iOS users cannot edit MS Office docs with the official MS Office app? How would MS feel if they cannot sell MS Office to iOS user. What will iOS users do? Will users be satisfied with third party Office apps on iOS?

34. speckledapple

Posts: 902; Member since: Sep 29, 2011

It looks like Apple users might be again at a disadvantage if Microsoft decides against Office for iOS over some revenue sharing.

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