Office for iPad reportedly key to the App Store rift between Apple and Microsoft

by Doug Drinkwater

December 12 2012

Office 365 subscriptions are apparently at the center of the App Store storm between Microsoft and Apple, leading to the possibility of another delay for the Office for iPad.

As reported yesterday, it was revealed that Apple had blocked Microsoft from updating its SkyDrive iOS app on the App Store after discovering that app users could subscribe for additional storage while in the application.

The suggestion now however is that Apple and Microsoft’s rift lies somewhat deeper than that, with AllThingsD reporting that the two tech giants are locked in battle over a 30% cut of Office 365 subscriptions for the impending Office Mobile app.

“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,” reads the report.

Although the Office iOS apps are expected to be free to those with a Microsoft account, it has been said that those looking to edit any of these documents will require a subscription to Office 365, Microsoft’s cloud-based productivity suite.

Office is a huge cash cow for Microsoft and is said to have represented $22.2 billion of the company’s nearly $70 billion in fiscal 2011 revenue, and for $14.1 billion of operating revenue.

Apple and Microsoft have both been reached out to by various technology blogs, with both companies at this moment in time refusing to respond on the speculation.

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