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Microsoft/Apple conflict actually related to Office for iOS

Earlier today, it was revealed that an ongoing conflict between Apple and Microsoft is hindering updates to the latter's SkyDrive iOS app. But according to a report by AllthingsD, while a SkyDrive update was rejected by Apple, the real profit dispute between the two is with the upcoming Microsoft Office suite for iOS to be released in 2013.

Microsoft does not believe that it should have to give Apple 30% portions of the revenue it receives from sales for Office 365 subscriptions. This is due to the fact that such subscriptions can be purchased from non-iOS devices.

According to AllThingsD,

“Apple has indeed rejected — not merely delayed — an update to Microsoft’s SkyDrive app for iOS following a disagreement over whether it is owed the 30 percent cut of in-app purchases it typically demands. But the spat over SkyDrive is just one small part of the larger argument between the two companies.

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.”

Microsoft Office already has already gained a succesful presence Macintosh users

The Microsoft Office suite is a much anticipated addition to the iOS app store. Its availability to the platform could potentially improve the sales of iPad and other iDevices, and subscriptions to Microsoft's own service.

Whether Apple's demands are to be seen as fair or not, it is in the interest of both companies to resolve their differences soon.

Source: Cult of Mac via AllThingsD

Brandon Shutt
Brandon is an A+ certified technician and freelance writer living in East Tennessee. He loves God, writing, science (especially technology) and philosophy. He is currently preparing to enter the field of information security.

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