toggle

AAPL Stock: 99.76 ( + 2.09 )

Printed from http://www.macnn.com

Apple taking 30 percent cut from in-app Office 365 subscriptions

updated 10:21 am EDT, Fri March 28, 2014

Microsoft sacrifices profits to reach iPad users

Apple is claiming a 30 percent cut of Office 365 subscriptions bought through Microsoft's Office for iPad, as usual at the App Store, an Apple spokesperson confirms. Although people can sign up for Office 365 outside of the iPad apps, a $100 in-app purchase provides a one-year plan. That suggests that Microsoft is sacrificing a significant amount of revenue to one of its rivals in order to attract iPad users.

The prospect of losing so much revenue is believed to have been one of the obstacles preventing Office from reaching the iPad sooner. Indeed, when Apple first began offering an in-app purchase system, many companies with subscription-based services -- such as magazines and newspapers -- resisted, either avoiding the App Store entirely or requiring people to subscribe via the web. Since then many have relented in order to capture the iOS market, but not all.





by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. dwlayman

    Fresh-Faced Recruit

    Joined: 03-06-10

    IOW, if you *must* subscribe, do so through Apple, and deprive MS of 30%!

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround sound home theater options, users hav ...

Kenu Airframe +

Simple, stylish and effective, the Kenu Aiframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fr ...

toggle

Most Commented