Microsoft Paying Apple 30-Percent Cut on In-App Office 365 Subscription Purchases

Discussion in ' News Discussion' started by MacRumors, Mar 27, 2014.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Microsoft is paying a 30-percent cut to Apple on Office 365 subscription purchases made within the Office for iPad apps released today, in line with Apple's in-app purchase requirements required of other brands reports Re/code. This was previously a sticking point between the two companies, and was rumored to be a large part of why Microsoft wouldn't release Office on the iPad.

    However, Microsoft's new CEO, Satya Nadella, is apparently more willing to work within Apple's requirements than ousted CEO Steve Ballmer. Year-long Office 365 subscriptions are available for in-app purchase for $100, with the subscription good for downloading Office on up to five tablets and five computers, Mac or PC computers, and Android, Windows or iOS tablets.

    Apple CEO Tim Cook tweeted to welcome Office for iPad to the App Store, with Nadella tweeting back that Microsoft was "excited to bring the magic of Office to iPad customers". During Nadella's press conference today, he said the company was looking to "empower people to be more productive" and to "do more across all devices".

    Microsoft Office for iPad is a free download from the App Store, with Office 365 Home Premium available for $10/month or $100/year good for five tablets and five computers, with an Office 365 Personal subscription good for one computer and one tablet coming later this year for $7/month or $70/year.

    There are also separate business options available as well, with billing based on total seats.

    - Microsoft Word for iPad [Direct Link]
    - Microsoft Excel for iPad [Direct Link]
    - Microsoft PowerPoint for iPad [Direct Link]

    Article Link: Microsoft Paying Apple 30-Percent Cut on In-App Office 365 Subscription Purchases
  2. ashwin4 macrumors member


    Aug 15, 2013
    In the midst of it
    The Office 365 subscription is beyond stupid. Everyone hates it
  3. JoEw macrumors 65816


    Nov 29, 2009
    It needs to be reasonably priced, for example for 3 dollars a month I would pay for guaranteed IOS/OSX support along with a sweetened deal for skydive.

    Basically do the opposite of Balmer and Microsoft will be fine.
  4. mdridwan47 macrumors 6502


    Jan 20, 2014
    I'm not sure if even 1% of iOS users are willing to accept this subcription model.... iWork FTW. :cool:
  5. KimJonNumberUn macrumors regular

    Dec 18, 2013
  6. iMcLovin macrumors 68000


    Feb 11, 2009
    the sad thing about a subscription model is that people that dont use word as their prime workprogram will try to avoid it. For me word is just a text edit tool for simple use, and the only program I use a lot is Powerpoint. But figured out Keynote is a lot better anyway, so Im not even gonna consider it. I would pay a single sum to have the ipad office package - but no way I´m gonna subscribe on something I use once a week maximum. I think many unpro-office users feel the same way about a subscription model.
  7. Rogifan macrumors P6


    Nov 14, 2011
    Take that you clowns at UBS. :D
  8. ITCentralPoint macrumors newbie

    Oct 19, 2012

    And Microsoft does It again. It feels as if the board of directors always decides the less friendly option. People are tired of subscriptions, they should have charged a fixed amount of money and offer a fee for Onedrive. Then whenever they want to release a new version, they can charge again if the improvements are worth it.
    They delayed 3 years to release Office for IOS and they do this silly subscription thing, this just doesn't make any sense, the same way Microsoft decisions in the last 10 years...
  9. dec. Suspended


    Apr 15, 2012
    Very nice - "The magic of Office..." - on my magical iPad...

    "Aparecium Excel!!!"

  10. ITCentralPoint macrumors newbie

    Oct 19, 2012
    Check out and your mind is going to blow. Just be patient for 2 hours then you will understand how it works #
  11. mejsric macrumors 6502a


    Mar 28, 2013
  12. Jsameds macrumors 68030

    Apr 22, 2008
    So my options are:

    - Pay a subscription in order to use word processing/spreadsheet/presentation software on my iDevice, and I don't own the software at all and can only use it if I cough up every month.


    - Use the completely free word processing/spreadsheet/presentation software that came with my iDevice indefinitely, and I own the software outright.

    Hmmmm. Tough choice...
  13. rye9 macrumors 65816


    Sep 20, 2005
    New York (not NYC)
    iWork originally cost $$, as I'm sure you know. So I don't know why "1% of iOS users" would be against paying for the world's most prominent office suite. Now, I dislike Microsoft and love Apple just as much as many people here (been with a Mac for 9 years and iPhones since 2008; no MS products anywhere in between) but I really don't see why people wouldn't use Office for iPad. I'm not saying I like the subscription model, I think it 100% should be a one-time fee... but assuming you're comparing it against iWork because iWork is free isn't too accurate, because Apple had once charged users, too.
  14. Rocko1 macrumors 68020


    Nov 3, 2011
    I will continue to use Office 2003 for my PC that I got used for $17 for the rest of my life. No need to upgrade, ever.
  15. bushido Suspended


    Mar 26, 2008
    iWorks apps for 9€ where expensive enough for me and do their job just fine :) might check those office apps out for viewing purposes just because
  16. Phil A. Moderator

    Phil A.

    Staff Member

    Apr 2, 2006
    Shropshire, UK
    I think "everyone" is a bit hyperbolic! Office 365 is excellent value for small businesses - I use it for my company and it is very cost effective.
  17. MacOS10 macrumors newbie

    Mar 27, 2014
    That throws the argument for Office 365 subscription, that MS does it to avoid giving 30% to Apple, out the window. It was already a dumb argument because nobody cares why MS does it, just that we'd have to pay a subscription service fee (plus be connected to the Internet and send data to MS!) for a freaking word processor. So yeah, forget it.

    And MS is late to the party here. AND on top of that, people use MacBook Pros for work, not iPads, unless they just want to use an iPad to look sleek.
  18. iSRS macrumors 6502


    Mar 2, 2010
    I have the University subscription. $79 for 4 years. So that is worth it to me. I am all in on iWork, to be honest, and have been since 05/06? But I have to admit, I put Word specifically through the paces today. Some attachments I get never look right in Pages or just the Mail viewer. They render flawlessly in Word for iPad. The same iWork flaw, which is really an iOS limitation, is the lack of Calibri fonts.
  19. Arran macrumors 68040


    Mar 7, 2008
    Atlanta, USA
  20. Jessica Lares macrumors G3

    Jessica Lares

    Oct 31, 2009
    Near Dallas, Texas, USA
    I'm happy that they're playing along. It's good for everyone who needs Office.

    I think people have been doing that since Office debuted. Spending $100 on software you use casually isn't worth it at all. Hence I have always used Write, WordPad, and whatever came with my secondhand machines until someone threw me a copy of Office 2003. Heck, I have been using TextEdit for years now until iWork recently went free.
  21. iSRS macrumors 6502


    Mar 2, 2010
    I bet I do 30% of my job as a project manager from an iPad. These apps will only increase that.
  22. B4U macrumors 65816


    Oct 11, 2012
    Am I going to do some serious office suite related work on my iPad or on my iMac / MacBook Pro?

    Since I OWN the damn software on both Mac, do I really have a legit reason to be ripped off every month?
    MS is simply out of their mind...
  23. lunarworks macrumors 6502a

    Jun 17, 2003
    Toronto, Canada
    If you work for a business that relies on Office, you probably don't have a choice and welcome this regardless of the subscription requirement.

    I'm tempted to get a subscription anyway, so I can have a current version of Office on my Mac and the three PCs in this house. We all use it for work, school, etc.
  24. iSRS macrumors 6502


    Mar 2, 2010
    A couple of other tidbits. The apps are free. If you just want to view MS format documents on your iPad, you now have the proper app support.

    Secondly, and oddly, the iPhone app that didn't work at all without a 365 subscription? Is now free to view AND edit/create. Odd choice. Guessing they don't see a 65,000 row excel spreadsheet being created on an iPhone.
  25. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002

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