Microsoft loses $2.5 billion/year by keeping Office off the iPad
If you’re wondering why we haven’t seen an Office version specially tailored for the iPad yet, Morgan Stanley’s Adam Holt might have the answer you are looking for. And it’s not a particularly pretty one. According to him, it’s precisely Microsoft who is against bringing the suite to the most popular tablet yet.
And here lies the paradox. The company might not be able to pull off the same strategy for a long time. Apple’s mobile operating system holds an important percent of the global market share, one that can’t be easily ignored. Also, if the Windows 8 and Windows RT powered tablets will continue the imposed trend of underachieving, Microsoft might have to review its strategy. The reluctance to bring the Office suite to the iPad is costing the company, according to Holt, more than $2.5 billion a year.
If Microsoft will ever decide to submerge and agree to design an Office version for the iOS, it might do so by developing its own app instead of creating a native one, thus bypassing the 30% Apple takes off for iOS subscription content.
The Wall Street Journal’s Digits blog also comments on the Office paradox. According to the article, the company risks compromising the future growth of the suite if it keeps going down this road and insists on “keeping the umbilical cord with Windows intact”.
Despite these articles and notes, it has been rumored for some time that Microsoft has begun working on a Office version of the iOS. Back in December, a mention of the iOS Office suite was briefly spotted on the official Microsoft website.