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.

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