office for the mac is software for a platform in a market microsoft dominates.
Microsoft may dominate, but Apple has done significant damage to that dominance in the last 5 years. The iWork suite for Mac (now sold as 3 separate programs -- each for $19.99) works quite well for more casual users. The addition of the iOS versions (each $9.99) makes the software more attractive for iPhone/iPad users: casual edits and presentations on those portable devices. I can find no numbers, but Apple has taken a significant bite out of MS's market share.
In 2006, Office for Mac sold for over $300. Today, the student/home edition sells for $150 (with a license for 3 copies). I believe that students on campus are able to buy it for less than that. There have been several factors, but I'm sure the aggressive pricing of the iWork suite has been a major influence in the lower price for Office.
Apple's increasing market share and the lowered prices for Office for Mac has cost Microsoft hundreds of millions of dollars in the last few years.
i don't know about the costs involved, but i bought my copy from microsoft, so i doubt apple got anything. any app on the ipad is funneled through the app store. every sale therefore enriches apple 30%.
Every sale that Apple makes of Office for Mac also enriches Apple. I'm guessing only a small percentage of the sales of Office for Mac are actually sold by Microsoft, and somebody is getting a "tax" on all of those sales. Some seem to forget that there's a substantial markup for virtually all retail sales.
in the case of tablets, we all agree that the ipad is rather weak in productivity apps, and i think giving apple a powerful app like office at the same time you are trying to break into the market with windows 8 is a bad idea.
There are risks in porting MS Office to the iPad. There are also risks in not porting MS Office to that computer.
maybe i am wrong. but, if so, why do you think they haven't done it yet?
It's all shades of gray, and it's a very complicated chess game.
As we have discussed elsewhere, there are some missing parts on iOS. So far, there is no RTF API available. That would make for much more work for MS to port Office. Maybe MS doesn't think that a tablet is a viable platform for Office. Or maybe they had too many other high-priority projects.
Or maybe you're right: they didn't want to lend credibility to the iPad by putting Office there. It's an interesting question.