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.

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
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across Apple Music, Calendar, Photos, and Safari.
More features and changes will follow in future versions,...
Apple is entering its most significant leadership transition in more than a decade as multiple senior executives prepare to depart and CEO Tim Cook begins to shape the company's next generation of leaders, according to Bloomberg's Mark Gurman.
In the latest edition of his "Power On" newsletter, Gurman explained that Jeff Williams, who was viewed as Cook's potential successor for several...
Nearly two weeks after the iPhone 17 series launched, analysts at investment banking firm Morgan Stanley said demand for the devices has been "modestly stronger than we originally expected," based on a combination of extended shipping estimates on Apple's online store and information it gathered from Apple's supply chain.
There has been strong early demand for the iPhone 17, iPhone 17 Pro,...
Apple's website offers a list of nearly 200 new features and changes (PDF file) included in the software update, released last month.
Apple also shared equivalent lists for iPadOS 26 and macOS Tahoe.
iOS 26 is compatible with the iPhone 11 and newer. To install the update, open the Settings app on your iPhone, tap on General, and tap on Software Update.
Below, we have highlighted eight ...
The MacBook Air is Apple's most popular laptop – a thin, fanless machine that wields quiet power thanks to the efficiency of Apple silicon. While the M4 model isn't exactly old, attention is already turning to its successor.
Apple doesn't telegraph new product launches ahead of time, but we can draw a surprisingly clear picture of what to expect by looking at Apple's silicon roadmap,...
After launching new iPhones last month, Apple is promoting iCloud+ with a prominent banner on its home page, in a bid to boost its services revenue. In addition to more storage, all iCloud+ plans include five perks for iPhone users.
As a refresher, iCloud includes 5GB of storage for free. If you want extra storage, you need to subscribe to an iCloud+ plan. In the United States, prices range...
With the second beta of iOS 26.1, Apple updated the design of alarms set on the iPhone, making them harder to dismiss than before.
Stopping an alarm in iOS 26.1 beta 2 requires a new Slide to Stop gesture rather than a simple tap. You can continue to tap to snooze an alarm, but if you want to turn it off entirely, you need to use a swipe.
Transitioning from a tap to a slide gesture to...
A new iPad mini is "absolutely" on the way, according to Bloomberg's Mark Gurman. So what should we expect from the successor to the iPad mini 7 that Apple released a year ago?
Processor and Performance
Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to information found in code that Apple mistakenly shared in...