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.
Thread beginning with comment 545022
To view parent comment, click here.
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"
MOS6510
Member since:
2011-05-12

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[4]: Siding with MS
by majipoor on Thu 13th Dec 2012 15:05 in reply to "RE[3]: Siding with MS"
majipoor Member since:
2009-01-22

"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. "

Well, in this case, Apple just refuse to make an exception for MS: 30% is for everybody, big or small player.

One can argue whether 30% is fair or not, but I don't see how to blame Apple to treat MS as any other developer.

Reply Parent Score: 1

RE[5]: Siding with MS
by MOS6510 on Thu 13th Dec 2012 15:15 in reply to "RE[4]: Siding with MS"
MOS6510 Member since:
2011-05-12

I don't think Microsoft should get special treatment, but I do think 30% is a lot of money for what Apple gives in return.

If it's apps and app extensions I can understand, because that's code hosted on Apple's servers. Subscriptions aren't. These are costs for who ever is providing a service to subscribers. In this case Microsoft and they need to cover these costs and make a profit, which is hard to do if someone grabs 30% and doesn't give anything in return.

Also 30% is relative. Of $1 it's 30 cents, but of $30 it's $10. Why not use 30% and hard cap it at $2? Or $4, $5?

The more stuff is in the app store the more appealing iOS devices will become. Apple should be less motivated grabbing money from companies who increase the value of Apple's iOS ecosystem.

Reply Parent Score: 1

RE[4]: Siding with MS
by Alfman on Thu 13th Dec 2012 15:32 in reply to "RE[3]: Siding with MS"
Alfman Member since:
2011-01-28

MOS6510,

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

Isn't that because of how ebay charges venders rather than user directly for the service, which is not ad supported either? If either of these conditions didn't hold, I suspect apple would be demanding a cut.

If OSNews had an IOS app, as I understand it they'd owe 40% of advertising proceeds to apple even if the ads were only shown after a user clicked out of the app onto the website.

http://www.guardian.co.uk/media/greenslade/2010/sep/16/apps-newspap.........


"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."

It goes beyond that unfortunately. Apple want a cut on external subscriptions as well.

http://mashable.com/2011/01/14/apple-no-free-ipad-newspapers/

I suppose some people might be fine with apple getting a cut of everything. You suggest having a 1% "symbolic" amount, but it's certainly a slippery slope and it symbolises apple's entitlements. Apple seems to want cuts on everything whether they've earned it or not. I feel the consumer would be better served if apple's store would compete on merit with independent app stores.

Edited 2012-12-13 15:44 UTC

Reply Parent Score: 4