AllThingsD has reported that Apple and Microsoft are arguing over more than just SkyDrive updates. The companies are apparently arguing over Office 365 subscription pricing. Microsoft is reportedly trying to pressure Apple into lowering its 70%/30% per subscription App Store fee when Microsoft eventually releases Office into the App Store. Apple has reportedly refused to comply with Microsoft’s demands.
AllThingsD has reported:[quote]”Office has long been a cash cow for Microsoft, and extending the platform to iOS will undoubtedly fatten it further. It will also bring significant benefits to Apple’s mobile platform, ones for which Microsoft feels it is owed a discount on that 30 percent cut that Apple would otherwise command on Office 365 subscriptions sold to iOS users through it. The apps are just part of a subscription that includes desktop access.”[/quote]
Apple has declined to comment on the issue while Microsoft still hasn’t responded to AllThingsD. While we can see where Microsoft is coming from, Apple has never publicly lowered any developer’s 30% subscription or app sale fee in the App Store. On top of this, Apple already has its own Microsoft Office competitor in the App Store: iWork. This already makes it harder for Microsoft to get Office for iOS approved for sale in the App Store, much less special revenue treatment from Apple.