Microsoft Paying Apple 30-Percent Cut on In-App Office 365 Subscription Purchases - MacRumors
Skip to Content

Microsoft Paying Apple 30-Percent Cut on In-App Office 365 Subscription Purchases

Microsoft is paying a 30-percent cut to Apple on Office 365 subscription purchases made within the Office for iPad apps released today, in line with Apple's in-app purchase requirements required of other brands reports Re/code. This was previously a sticking point between the two companies, and was rumored to be a large part of why Microsoft wouldn't release Office on the iPad.

However, Microsoft's new CEO, Satya Nadella, is apparently more willing to work within Apple's requirements than ousted CEO Steve Ballmer. Year-long Office 365 subscriptions are available for in-app purchase for $100, with the subscription good for downloading Office on up to five tablets and five computers, Mac or PC computers, and Android, Windows or iOS tablets.

Microsoft Word for iPad

Indeed, Microsoft does offer Office 365 subscriptions within the just-released Word for iPad and the other Office apps and, yes, it is paying the 30 percent cut, Apple confirmed to Re/code. Microsoft declined to comment on the matter.

Apple has taken a hard line with all manner of publishers that want to sell things, even subscriptions that go well beyond the iPad content — if anything is sold in the app, they have to use Apple’s method and hand over 30 percent.

Apple CEO Tim Cook tweeted to welcome Office for iPad to the App Store, with Nadella tweeting back that Microsoft was "excited to bring the magic of Office to iPad customers". During Nadella's press conference today, he said the company was looking to "empower people to be more productive" and to "do more across all devices".

Microsoft Office for iPad is a free download from the App Store, with Office 365 Home Premium available for $10/month or $100/year good for five tablets and five computers, with an Office 365 Personal subscription good for one computer and one tablet coming later this year for $7/month or $70/year.

There are also separate business options available as well, with billing based on total seats.

- Microsoft Word for iPad [Direct Link]
- Microsoft Excel for iPad [Direct Link]
- Microsoft PowerPoint for iPad [Direct Link]

Popular Stories

Apple iCloud Plus expansion hero

iCloud+ Now Includes Apple TV, Apple Arcade, and Curated Apple Music Stations in Over 100 Countries

Tuesday September 15, 2026 1:43 am PDT by
Apple today announced a new subscription initiative that turns paid iCloud+ subscriptions into a broader services bundle in more than 100 countries. In select countries, Apple says every paid iCloud+ plan, including the cheapest 50GB tier, now includes Apple TV and Apple Arcade "at no additional cost," while family sharing extends the storage, TV and Arcade access to up to five people....
Everything New Your iPhone Can Do on iOS 27 Feature 1

50 New Things Your iPhone Can Do in iOS 27 - Out Now!

Monday September 14, 2026 10:48 pm PDT by
Apple released iOS 27 this week, and despite the company's focus this year on refining its flagship operating system and nixing bugs, there are still many additional features to explore, not least of which is Apple's new context-aware Siri, re-tooled for the generative AI era. Which iPhones Support Every iOS 27 Feature? This year's major iPhone software update isn't all about AI, though,...
iOS 27 Icon iPhone

iOS 27 Available Now With These 8 New Features

Monday September 14, 2026 9:00 am PDT by
Update — 10 a.m. Pacific Time: Apple has released iOS 27. During its iPhone 18 Pro and iPhone Duo event last week, Apple announced that iOS 27 will be released widely on Monday, September 14. iOS 27 should be available around 10 a.m. Pacific Time / 1 p.m. Eastern Time today via the Settings app, under General → Software Update. Below, we have highlighted eight new features and...

Top Rated Comments

ashwin4 Avatar
163 months ago
The Office 365 subscription is beyond stupid. Everyone hates it
Score: 60 Votes (Like | Disagree)
163 months ago
So my options are:

- Pay a subscription in order to use word processing/spreadsheet/presentation software on my iDevice, and I don't own the software at all and can only use it if I cough up every month.

Or...

- Use the completely free word processing/spreadsheet/presentation software that came with my iDevice indefinitely, and I own the software outright.


Hmmmm. Tough choice...
Score: 41 Votes (Like | Disagree)
mdridwan47 Avatar
163 months ago
I'm not sure if even 1% of iOS users are willing to accept this subcription model.... iWork FTW. :cool:
Score: 32 Votes (Like | Disagree)
Phil A. Avatar
163 months ago
The Office 365 subscription is beyond stupid. Everyone hates it

I think "everyone" is a bit hyperbolic! Office 365 is excellent value for small businesses - I use it for my company and it is very cost effective.
Score: 21 Votes (Like | Disagree)
zaphon Avatar
163 months ago
Renting software is like being forced to play arcade machines when you know you have a home console that can run the games just as well for a one-off fee.

Say no to rental software.

Actually if you keep your software upgraded (MS and Adobe both being great examples of people doing the Subscription Model now), it's actually cheaper to do the subscription. It's only more expensive if you're that guy still using Office 2003 because you refuse to upgrade.
Score: 12 Votes (Like | Disagree)
iMcLovin Avatar
163 months ago
the sad thing about a subscription model is that people that dont use word as their prime workprogram will try to avoid it. For me word is just a text edit tool for simple use, and the only program I use a lot is Powerpoint. But figured out Keynote is a lot better anyway, so Im not even gonna consider it. I would pay a single sum to have the ipad office package - but no way I´m gonna subscribe on something I use once a week maximum. I think many unpro-office users feel the same way about a subscription model.
Score: 9 Votes (Like | Disagree)