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 pro tell logo

Apple Launching Five New Products This Friday

Monday November 2, 2026 1:22 am PST by
Apple is releasing five new products this Friday, November 6, following pre-orders that opened last week, including its first touchscreen MacBook Pro models. The following new products will be available from Friday: iPad mini with OLED display and A20 Pro chip iMac with M6 chip 14-inch MacBook Pro with M6 chip 14-inch MacBook Pro with OLED touchscreen 16-inch MacBook Pro with OLED...
iPhone Duo Display Cracking

Apple Alerts Stores to iPhone Duo's Display Cracking Issue

Friday October 30, 2026 3:20 pm PDT by
In a memo shared with Apple Stores and Apple Authorized Service Providers this week, and later obtained by MacRumors, Apple provided technicians with guidance on how to diagnose and address the iPhone Duo's inner display cracking issue. If a customer reports the issue, Apple advised technicians to inspect the iPhone Duo and repair or replace it in accordance with their standard procedures....
Apple Logo Gradient 16x9 1

Apple Isn't Done With 2026: Here's What's Still Coming

Monday November 2, 2026 7:27 am PST by
Apple's busiest season isn't over yet. Far from it. With two hardware launch dates still to come in November, plus software updates and new smart home accessories running into December, there's more on the way from Apple before the end of 2026, so be sure to stick around. Below, we've rounded up what's still coming, along with one date in particular that's worth watching if you're a holiday...

Top Rated Comments

ashwin4 Avatar
165 months ago
The Office 365 subscription is beyond stupid. Everyone hates it
Score: 60 Votes (Like | Disagree)
165 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
165 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
165 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
165 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
165 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)
Latest Stories
Apple Released the iPhone X Nine Years Ago Today
Apple Released the iPhone X Nine Years Ago Today
1 hour ago
Apple Requiring Developers to Disclose Location Sharing and Dating Features in Apps
Apple Requiring Developers to Disclose Location Sharing and Dating Features in Apps
9 hours ago
Apple's Q4 2026 Earnings Call Takeaways
Apple's Q4 2026 Earnings Call Takeaways
10 hours ago
Apple Dodges Question on More Price Hikes as Memory Costs Climb
Apple Dodges Question on More Price Hikes as Memory Costs Climb
10 hours ago
Apple CEO Ternus Says iPhone Duo Shortages Have No End Date in Sight
Apple CEO Ternus Says iPhone Duo Shortages Have No End Date in Sight
12 hours ago
Apple Reports 4Q 2026 Results: $30.7B Profit on $114.5B Revenue
Apple Reports 4Q 2026 Results: $30.7B Profit on $114.5B Revenue
12 hours ago
Early Black Friday Brings Steep Price Drops on Apple's Latest iPhone Cases
Early Black Friday Brings Steep Price Drops on Apple's Latest iPhone Cases
15 hours ago
John Ternus Hosting His First Earnings Call as Apple CEO Today
John Ternus Hosting His First Earnings Call as Apple CEO Today
17 hours ago
Here's What Spotify Looks Like on Apple's HomeView
Here's What Spotify Looks Like on Apple's HomeView
17 hours ago
iOS 27.2.1 Coming Soon, iOS 27.3 Beta Likely Available Tomorrow
iOS 27.2.1 Coming Soon, iOS 27.3 Beta Likely Available Tomorrow
18 hours ago
Mark Gurman: Apple Initially Aimed to Release iPhone Duo in November
Mark Gurman: Apple Initially Aimed to Release iPhone Duo in November
18 hours ago
Best Early Black Friday Deals on Apple Products Available Now
Best Early Black Friday Deals on Apple Products Available Now
19 hours ago
Apple Isn't Done With 2026: Here's What's Still Coming
Apple Isn't Done With 2026: Here's What's Still Coming
19 hours ago
Apple 'HomeView Ultra' With 9-Inch 360º Screen Detailed in New Report
Apple 'HomeView Ultra' With 9-Inch 360º Screen Detailed in New Report
19 hours ago
Apple TV 4K Pre-Order Discount Returns at Amazon
Apple TV 4K Pre-Order Discount Returns at Amazon
19 hours ago
Zoom and These Microsoft Apps Now Optimized for iPhone Duo
Zoom and These Microsoft Apps Now Optimized for iPhone Duo
20 hours ago
Canva Brings Free All-in-One Affinity App to iPad
Canva Brings Free All-in-One Affinity App to iPad
20 hours ago
iPhone Duo: Latest Buyer Wait Times
iPhone Duo: Latest Buyer Wait Times
52 minutes ago
iPhone Duo Owners Can't Change Display Zoom After Setup
iPhone Duo Owners Can't Change Display Zoom After Setup
18 hours ago
Apple HomeView Could Double as a Security Camera
Apple HomeView Could Double as a Security Camera
1 day ago
Apple Launching Five New Products This Friday
Apple Launching Five New Products This Friday
1 day ago
Nearly Every M5 MacBook Air Now $200 Off on Amazon
Nearly Every M5 MacBook Air Now $200 Off on Amazon
2 days ago
Apple's HomeView Ships With Six-Month-Old Software
Apple's HomeView Ships With Six-Month-Old Software
2 days ago
Three New iPads Rumored to Launch in First Half of 2027
Three New iPads Rumored to Launch in First Half of 2027
2 days ago
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
2 days ago
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
3 days ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
3 days ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
3 days ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
3 days ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
3 days ago