Microsoft and Apple Facing Off Over Office for iOS Subscription Revenues, Not SkyDrive

OfficelogoAllThingsD is reporting that contrary to earlier reports that Apple and Microsoft were arguing over a 30% cut of storage upgrade sales through Microsoft's SkyDrive cloud storage utility, instead the companies are negotiating over revenue Microsoft would bring in as part of its Office 365 subscription service.

Office has long been a cash cow for Microsoft and extending the platform to iOS will undoubtedly fatten it further. It will also bring significant benefits to Apple’s mobile platform, ones for which Microsoft feels it is owed a discount on that 30 percent cut that Apple would otherwise command on Office 365 subscriptions sold to iOS users through it. The apps are just part of a subscription that includes desktop access.

So the company has been pushing Apple to adjust the 70/30 revenue split in its developer license agreement. Predictably, Apple has refused to comply. It’s not yet clear what sort of concession Microsoft is seeking, but whatever it is, Apple’s evidently not willing to consider it. Indeed, I’m told it’s taken a “the rules are the rules” stance, which would suggest it’s not at all willing to negotiate a different split. Apple’s position: If a customer comes through its gateway, it feels it is deserved the commission outlined in 11.12 of its developer license.

Apple, for its part, says that App Store rules are fair and are applied equally to all developers, big and small.

Office for iOS has been rumored several times over the past year, but now seems closer to fruition than ever -- if Apple and Microsoft can come to some agreement. Yesterday, Microsoft leaked references to 'Office Mobile for iPhone', 'Excel for iPad', and 'PowerPoint for iPad'.

Top Rated Comments

basesloaded190 Avatar
148 months ago
It's a slippery slope if you let one developer in with different rules than what the rest are playing by.
Score: 55 Votes (Like | Disagree)
ArchAndroid Avatar
148 months ago
Microsoft are having a laugh. Rules are rules; either abide by them or go elsewhere. Would love to read that Apple email though:

'Dear Microsoft,

given your gross lack of comprehension, we have compiled a concise list of important Apple Store rules:

1. We take 30% of everything.
2. Read Number 1.

Yours apathetically,
:apple:'
Score: 30 Votes (Like | Disagree)
AppleScruff1 Avatar
148 months ago
there is no need for MS Office for most people. most people can do just fine with Pages/Numbers/Keynotes.

just like most people can do just fine without rooting their phone/tablet. only the hardcore need Office or Android.
:rolleyes: Right.
Score: 22 Votes (Like | Disagree)
jamesnajera Avatar
148 months ago
Just what I want, a subscription based MS Office. Way to blow it MS.
Score: 21 Votes (Like | Disagree)
WhySoSerious Avatar
148 months ago
there is no need for MS Office for most people. most people can do just fine with Pages/Numbers/Keynotes.

just like most people can do just fine without rooting their phone/tablet. only the hardcore need Office or Android.
Score: 19 Votes (Like | Disagree)
Stella Avatar
148 months ago
Well microsoft, use this to your advantage.

Release Office only for mobile windows and leverage that face: MS office available only on microsoft powered phones and tablets, great for businesses and consumers alike. The best compatibility between your desktop and tablet, at a level iOS cannot achieve.
Score: 15 Votes (Like | Disagree)

Popular Stories

apple tv 4k yellow bg feature

When to Expect a New Apple TV to Launch

Tuesday April 9, 2024 8:30 am PDT by
It has been nearly a year and a half since the current Apple TV was released, so the device is becoming due for a hardware upgrade. Below, we recap rumors about the next Apple TV, including potential features and launch timing. The current model is the third-generation Apple TV 4K, announced in October 2022. Key new features compared to the previous model from 2021 include a faster A15...
iPhone 16 Camera Lozenge 2 Colors

iPhone 16 Plus Rumored to Come in These 7 Colors

Wednesday April 10, 2024 3:52 am PDT by
Apple's iPhone 16 Plus may come in seven colors that either build upon the existing five colors in the standard iPhone 15 lineup or recast them in a new finish, based on a new rumor out of China. According to the Weibo-based leaker Fixed focus digital, Apple's upcoming larger 6.7-inch iPhone 16 Plus model will come in the following colors, compared to the colors currently available for the...
iPhone 16 Pro Sizes Feature

Alleged iPhone 16 Battery Details Show Smaller Capacity for One Model

Tuesday April 9, 2024 3:46 am PDT by
Apple's upcoming iPhone 16 lineup will feature bigger battery capacities compared to previous-generation models with the exception of the iPhone 16 Plus, which will have a smaller battery than its predecessor. That's according to the Chinese Weibo-based leaker OvO Baby Sauce OvO, a relatively new source of supply chain leaks with an as-yet unproven track record for accuracy. The iPhone 16 ...
apple silicon feature joeblue

Macs to Get AI-Focused M4 Chips Starting in Late 2024

Thursday April 11, 2024 10:10 am PDT by
Apple will begin updating its Mac lineup with M4 chips in late 2024, according to Bloomberg's Mark Gurman. The M4 chip will be focused on improving performance for artificial intelligence capabilities. Last year, Apple introduced the M3, M3 Pro, and M3 Max chips all at once in October, so it's possible we could see the M4 lineup come during the same time frame. Gurman says that the entire...
M3 iPad Feature 3

Apple Event for New iPads Still Considered 'Unlikely' Following Delays

Tuesday April 9, 2024 6:37 am PDT by
Apple is "unlikely" to hold an event to announce new iPad Pro and iPad Air models, according to sources cited by Taiwanese supply chain publication DigiTimes. Bloomberg's Mark Gurman already said Apple was not planning to hold an event for the new iPads, but he made this claim back in early March, before it was reported that the devices were postponed due to manufacturing delays. With the...
iOS 18 WWDC 24 Feature 2

iOS 18 May Feature All-New 'Safari Browsing Assistant'

Wednesday April 10, 2024 6:11 am PDT by
iOS 18 will apparently feature a new Safari browsing assistant, according to backend code on Apple's servers discovered by Nicolás Álvarez. MacRumors contributor Aaron Perris confirmed that the code exists, but not many details are known at this time. Álvarez said it seems like the browsing assistant will use iCloud Private Relay's infrastructure to send relevant data to Apple in a...