Rumors Claim Microsoft Is Pressing Apple to Take a Smaller Slice of Office for iOS Sales

Dec 12 2012, 10:51am CST | by , in News | Apple

Rumors Claim Microsoft Is Pressing Apple to Take a Smaller Slice of Office for iOS Sales
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Microsoft wants Apple to take less than 30%

Apple typically demands 30% of in-app purchases made by consumers on each app available on the App Store. Apple recently rejected an update to Microsoft's SkyDrive after it had a dispute with Microsoft over that 30% cut. Sources are now claiming that Microsoft and Apple are still in negotiations over the 30% commission Apple demands that Microsoft doesn't want to pay for office 365 subscriptions.

Office 365 subscriptions will be sold through Microsoft Office for iOS, which has long been rumored and expected to launch next year. Office productivity applications are one of Microsoft's biggest money makers and while office compatibility is one of the biggest benefits of the Surface RT tablet. It would make a lot of sense for Microsoft to get Office onto popular Apple gadgets. Microsoft is reportedly pushing for an adjustment to the 70/30 revenue split in its developer license agreement.

I would think Apple is highly unlikely to agree to that because it simply doesn't have to. If Microsoft wants to offer Office on iOS gadgets, it will pay. At the same time, if Apple allowed Microsoft a different cut, many other developers would be asking for the same thing. Indications are that Apple is simply not willing to negotiate.

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