“With the launch of Office for iPad yesterday, Microsoft again effectively cut Apple out of most of the revenue stream by making the apps free to download,” Gregg Keizer reports for Computerworld.
“Office for iPad can be downloaded free of charge and used to view documents and spreadsheets, and present PowerPoint slideshows. To activate the three apps — Word, Excel and PowerPoint — for document creation and editing, users must sign in with valid Office 365 subscriber credentials,” Keizer reports. “But because the apps are free, Microsoft is not obligated to fork over 30% of the sales revenue to Apple, a condition of the App Store for paid apps and all in-app purchases.”
“The only revenue for which Apple is due its 30% commission will be what’s produced by in-app purchases of an Office 365 plan, the same scenario as has existed since mid-2013 when Microsoft first dropped Office Mobile for the iPhone into the App Store,” Keizer reports. “In early 2011, then-CEO Steve Jobs put it plainly: ‘Our philosophy is simple — when Apple brings a new subscriber to the app, Apple earns a 30% share,’ Jobs wrote in a February 2011 statement. ‘When the publisher brings an existing or new subscriber to the app, the publisher keeps 100% and Apple earns nothing.'”
Read more in the full article here.
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