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.
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RE: Siding with MS
by MOS6510 on Thu 13th Dec 2012 08:15 UTC in reply to "Siding with MS"
Member since:

If you sell marine parts Apple doesn't pinch 30%. They don't make any money if you buy/sell stuff via the eBay app.

They want 30% of any transactions related to the app use. In this case it's Office 365 subscriptions. If you have an app that allows such a thing they must be able to purchased via the app, I agree this is user friendly, but then Apple takes 30%, which I think is less fair.

I think Apple can charge 30%, but to a certain maximum and that maximum should be rather minimal. They can charge what they want, but it should have some relation to costs, effort and a small profit margin.

It doesn't costs Apple anything more or less if someone does or doesn't subscribe to Office 365. Any percentage they take is pure profit.

Reply Parent Score: 4

RE[2]: Siding with MS
by Tractor on Thu 13th Dec 2012 13:12 in reply to "RE: Siding with MS"
Tractor Member since:

Well, apparently, this is not limited to the "use of the software", or this definition extends so broadly that it does, indeed, extend to purchases done with the software (which i think is the case).

Take the example of newspaper : they have to give up a 30% cut on the content price. New article, new content, same software, but 30% cut by Apple (+ : they actually hide who the customers are, to stay in charge, therefore the newspaper does not know who its customers are !)

But well, since Apple can kill any app off its appstore, they are entitled to enforce any decision they want. The other side either abide, or die.

Reply Parent Score: 1

RE[3]: Siding with MS
by MOS6510 on Thu 13th Dec 2012 13:20 in reply to "RE[2]: Siding with MS"
MOS6510 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

RE[2]: Siding with MS
by JAlexoid on Fri 14th Dec 2012 12:42 in reply to "RE: Siding with MS"
JAlexoid Member since:

eBay is not a good example, since it's not eBay that is making the money. eBay is just a transaction processor.(But I'm pretty sure that you still have to register on for an account, before using the app. Thus it's not really against Apple's rules)

Is there some physical goods store app does direct sales registration and sales in app? (And I mean where the seller is the app publisher, not a third party.)

However, any transaction that is handled by Apple having a 30% cut is perfectly reasonable.

Reply Parent Score: 2