• Report: Microsoft Losing a Fortune on Office Holdout for iPad

    by
    Michael Essany
    Published on 2013-02-16 06:24 AM
    16 Comments Comments


    Microsoft is reportedly losing a large fortune for every year that passes without a formal agreement to bring the full Office suite to Apple's iPad.

    Microsoft has understandably given a massive competitive advantage to its Surface tablet by logically making the entire Office productivity suite compatible with the new product line. But it's difficult to find an industry analyst who thinks that Microsoft will gain any significant tablet market share at Apple's expense on the basis of this fact alone.

    Morgan Stanley analyst Adam Holt is among those who believe Microsoft is missing out on a major payday.

    Holt figures that if Microsoft were to release Office for iOS, pricing it at $60, it could potentially sell it to roughly 30 percent of iPad users. Extend that to an installed base of 200 million iPads in 2014, and Holt concludes that Microsoft would generate about $2.5 billion in revenue per year on Office for iPad — less Apple’s App Store commission.
    As John Paczkowski of All Things D reported Friday, Microsoft certainly understands that it's missing out on a huge revenue opportunity. “And it’s more likely than not that the company is very carefully weighing tradeoffs here,” Paczkowski says, “and trying to determine if keeping Office off iOS is a sufficient incentive for enterprise to use Surface and other Windows tablets.”

    In recent months, we've heard no shortage of rumors about Office either coming or not coming to the iPad. All we know for certain is that talks have taken place between Microsoft and Apple. But it doesn't look like the proposed revenue split was acceptable to Microsoft. The only question now is how much longer can Microsoft truly afford to not make Office available for iPad?

    Source: All Things D
    This article was originally published in forum thread: Report: Microsoft Losing a Fortune on Office Holdout for iPad started by Michael Essany View original post
    1. Categories:
    2. Apple,
    3. iPad
    Comments 16 Comments
    1. Eonhpi's Avatar
      Eonhpi - 2013-02-16, 06:29 AM
      I smell law suit lmao
    1. jOnGarrett's Avatar
      jOnGarrett - 2013-02-16, 07:17 AM
      Quote Originally Posted by Eonhpi View Post
      I smell law suit lmao
      ?? why, and from who?
    1. baskie's Avatar
      baskie - 2013-02-16, 09:21 AM
      30% take up at $60 a pop? What utter shite.
    1. bmwraw8482's Avatar
      bmwraw8482 - 2013-02-16, 10:44 AM
      30% of users spending $60? Doubt it.
      Even if I were to spend that, I'd get it on my other devices with the same apple id so there goes at least half that profit.
      Microsoft has already missed the bus on this one too. Google docs is a great (free) compatible alternative.
    1. Roadw3's Avatar
      Roadw3 - 2013-02-16, 11:06 AM
      60 bucks for the "app" I doubt that. Got to love analysts always looking for the money.
    1. b1997469's Avatar
      b1997469 - 2013-02-16, 11:59 AM
      Think about it. Why is there no Office on IOS? The same reason there is no Pages, Numbers and Keynote on Windows 8/RT.

      Its the competition so it would be really stupid for Microsoft to make an Office for IOS. Im really surprised to see Office on any Apple computer.
    1. peacedog's Avatar
      peacedog - 2013-02-16, 12:18 PM
      There's no way they will have a 30% adoption rate on a $60 app, even if it's Microsoft Office. I'm not buying it. My iPad is more of a consumption device. I have no interest in producing documents and spreadsheets on the iPad. That's what a laptop and desktop are for.
    1. exNavy's Avatar
      exNavy - 2013-02-16, 12:27 PM
      I switched from office a couple years back. I'm tired of how much the upgrade cost is for minimal benefit. I don't like all the bloated updates throughout the year. I really only need Word which Pages does just fine replacing.
    1. fanboyfanboy's Avatar
      fanboyfanboy - 2013-02-16, 01:55 PM
      While many users wouldn't buy it, think of all the companies that gives their employees iPads. Even schools, this year all my teachers got a 3rd gen IPad , and I'm sure they would love office for it. So while many standard users won't pay the price, think how many companies will.
    1. baskie's Avatar
      baskie - 2013-02-16, 02:43 PM
      What's the split of corporate to private users on iPad? Can't be more than 80/20. Therefore, it would require 100% of corporate users to adopt and at lease 10% private users. No way.

      And I suspect the 80/20 split is massively wrong. Suspect nearer 95/5.
    1. Mrteacup's Avatar
      Mrteacup - 2013-02-16, 03:18 PM
      Quote Originally Posted by b1997469 View Post
      Think about it. Why is there no Office on IOS? The same reason there is no Pages, Numbers and Keynote on Windows 8/RT.

      Its the competition so it would be really stupid for Microsoft to make an Office for IOS. Im really surprised to see Office on any Apple computer.
      That's not true, especially with the whole why is there no iWork on windows. There is no possible way Microsoft can hold back on apple selling iWork on windows desktop. First because its open source and second because that's rigging the competition.

      Microsoft office isn't on iOS because of Microsoft. First Apple can't deny it for being competition. Second apple would probably be making more money off their office software then they make on iWork. Third just look at the fact apple allows other music services, maps services, mail services, etc. they need to keep the consumer happy, honestly who would stay with apple if they (even if it was legal) blocked all the competing maps applications? They would immediately lose 10-30% of veteran and new users. A lot would just deal with the app or use a web-based app but they would eventually go back to allowing other competition.
    1. Loxs's Avatar
      Loxs - 2013-02-16, 03:44 PM
      Quote Originally Posted by bmwraw8482 View Post
      30% of users spending $60? Doubt it.
      Even if I were to spend that, I'd get it on my other devices with the same apple id so there goes at least half that profit.
      Microsoft has already missed the bus on this one too. Google docs is a great (free) compatible alternative.
      A lot of iPads are in business' just because you as a user don't see the benefit business users would and wouldn't worry about a $60 price tag. I think office on iPad would be a great thing for both apple and Microsoft.
    1. stevelucky's Avatar
      stevelucky - 2013-02-16, 04:59 PM
      Quote Originally Posted by baskie View Post
      30% take up at $60 a pop? What utter shite.
      I believe the 30% he's referring to is Apples take on every AppStore sale. Though I'm not sure why that's considered unfair by some. Apple has created the ecosystem for these apps to sell. Without them, this whole thing wouldn't exist. Plus, Apple eats the cost for the credit card transaction. The lions share of apps cost $.99 so Apples 30% doesn't add up to much once you take the credit card fees out.
    1. MikesPCNet's Avatar
      MikesPCNet - 2013-02-16, 07:50 PM
      Quote Originally Posted by jOnGarrett View Post
      ?? why, and from who?
      Apple!! Because they sue everybody!! :-)
    1. djrbx's Avatar
      djrbx - 2013-02-16, 11:58 PM
      I work for a mac centric department for a major company and unfortunately, Apple does not have any way for corporate to buy Volume licenses for apps in the app store in both iOS and OSX. I believe this is the major factor why Microsoft will be hesitant on Office for Mac. Microsoft had always catered to businesses to use their office suite, that is where the majority of the Office line income comes from. Without the ability to buy VL, I doubt Microsoft will cater to iOS.
    1. spoofdogg's Avatar
      spoofdogg - 2013-02-18, 01:57 AM
      I use QuickOffice PRO for $16
      It has most of the usual office features with a nice GUI. There's no way I'd spend $60 on MS Office.

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