Apple blocks SkyDrive app for iOS devices as Microsoft balks over 30% App Store fee

“The difficulty began when Microsoft rolled out the ability for SkyDrive users to purchase more storage space on the service. From that point, the company was not permitted to update its application in the iOS App Store,” Alex Wilhelm reports for TNW. “The reason? It doesn’t pay Apple a 30% cut of subscription revenue generated by the application through the paid, additional storage. Microsoft does not appear keen to pay Apple the 30% cut, as it lasts in perpetuity, regardless of whether a user continues to use an iOS device or not, as the billing is through their Apple account.”

Wilhelm reports, “Therefore, if a user signed up for a few additional gigabytes on their iOS device, and then moved to Android or Windows Phone or not phone at all, for the length of their account, Apple would collect 30% of their fee for storage. This hasn’t sat well with Microsoft.”

MacDailyNews Take: The number of people incurring brain injuries severe enough to cause them to downgrade from an iOS device to an inferior platform is negligible. And, as if Apple gives two shits about what sits well with Microsoft.

“Microsoft has persisted in trying to work out a compromise with Apple, but has thus far failed to come to an agreement. The company offered to remove all subscription options from its application, leaving it a non-revenue generating experience on iOS. The offer was rebuffed,” Wilhelm reports. “If a service has a subscription option, it seems, and it is not listed in the iOS store, the application cannot, and will not be allowed… TNW suspects that the sticking point in that matter was the ability to sign up for SkyDrive through the application, a ‘no’ in Apple books.”

Read more in the full article here.

MacDailyNews Take: Here’s the deal, Apple’s rules are crystal clear: Pay the fee or you don’t get into the App Store to take advantage of Apple’s free distribution via multiple billion-dollar data centers (current and future), promotion, marketing, ecosystem, etc., nor does your app/service gain exposure to the world’s #1 user base; the one user base proven to have disposable income and the will to spend it.

Microsoft can go “service” those who settle for lesser platforms, who want everything for free, and see how far that gets them.

As Microsoft well knows, Apple has built something not easily replicated. If you want in, there is a fee to cover Apple’s costs and inimitable hard work; past, present, and future.

Microsoft has two choices: Pay the fee or go pound sand.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

52 Comments

  1. I’d like to better comprehend what’s the BFD here:

    I bought space at Evernote. I bought it via the web, not their app. Apple doesn’t dick around with Evernote because they sell cloud space via other means. The same goes with at least a DOZEN other cloud services.

    So Microsoft: Are you just being assholes to Apple, TRYING to tick them off? Is that why this rhetoric war is going on? I bet it is.

    The solution MS: Just give away the SkyDrive app, no in-app sales, period. It’s so damned simple and has lots of precedence. Oh and STFU. Stop provoking Apple with your BS. You’re annoying, as usual.

  2. Apple is the new Microsoft. All you fanboys probably jumped on the Apple fan bandwagon when Apple was the nice kid on the block and Microsoft was the evil empire. Well, kids, get used to it. Apple had the coup and turned out to be the new dictator. It happens in world politics, and it happens in the tech world. It is human nature. If you cannot see that Apple will get as bad as Microsoft, you have no idea about human nature.

    1. Troll, take the time to read the above comments, before opening your big trap! Didn’t your mother teach you that if you don’t have anything nice to say, keep your trap shut!

  3. Hmm, I feel I might just have viewed the shallow end of the gene pool. Pop this into your Numbers spreadsheet; 1.25billion Windows PCs worldwide. 500 million Android devices wordwde. 365 million iOS devices worldwide. One of these numbers is smaller than the others. (ie: it’s not MS who are missing out). MS are far from being the only ones baulking at Apples heavy fees. BTW: Mac users can use SkyDrive from their desktop, just not from iOS devices.

    1. Actually, SkyDrive works perfectly fine on iOS devices. Users can’t sign up for a subscription inside of said iOS device, nor can Microsoft link to a subscription page from inside the SkyDrive app on iOS. But, the app functions perfectly. All Apple did was block an update that would allow non-subscribers to become subscribers without visiting Microsoft’s website in search of a subscription. This is the same way that the Netflix app works.

      Also, while there may be 1.25 billion Windows PCs worldwide, that number is no longer growing. The iOS device numbers are growing every year and will eventually overtake Windows PC devices as the post-PC era emerges fully into the light.

      Apple isn’t missing out on anything by blocking the update to the SkyDrive app. Microsoft can easily pay Apple their 30% and get the app updated and into the store. They don’t want to do that. The only thing on which Apple is missing out is an update of an app that earns them no money to a new version of said app (that still earns them no money).

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