Linked by Thom Holwerda on Wed 12th Dec 2012 23:18 UTC
Talk, Rumors, X Versus Y "Sources familiar with the ongoing negotiations between Apple and Microsoft tell AllThingsD that the companies are at loggerheads not over the 30 percent commission Apple asks of storage upgrade sales made through SkyDrive, but over applying that same commission to Office 365 subscriptions sold through Microsoft Office for iOS, which is expected to launch sometime next year." iOS could end up being the only mobile platform without Office.
Permalink for comment 545022
To read all comments associated with this story, please click here.
RE[3]: Siding with MS
by MOS6510 on Thu 13th Dec 2012 13:20 UTC in reply to "RE[2]: Siding with MS"
Member since:

Yes, it also includes subscriptions, add-ons, plugins.

You can get free apps or paid apps, that allow you to extend them with more functions at a price, which Apple takes a 30% cut in.

eBay doesn't extend the app or offers subscriptions, but you can buy/sell stuff using it and Apple takes no cut.

In the case of subscriptions, if there are any Apple demands they can be made using the app and they get a 30% cut. So you can't offer a link to your website and have people subscribe there.

In the case of Office 365 subscriptions it seems to me Apple is taking 30% of the price without doing anything for it or giving anything back. Then again if they make an exception for Microsoft others will demand the same treatment.

Microsoft do have costs and the need your money to make it work, which makes it difficult if Apple takes a 30% bite out of it.

I think Apple should, if they really want a cut, limit it to 1% or some small symbolic amount. It's not where the real money is for them and I think they win more goodwill and even make more money if they dropped this.

Reply Parent Score: 2