What’s With Microsoft And iPads?

If you have an iPad and you would like to use Microsoft technology, you probably are feeling pangs of curiosity about why Microsoft seems to be ignoring what could be a tremendous revenue stream. You are not alone. Consumers, industry analysts and iPad manufacturers are wondering the same thing.

ipad_miniIt seems that Microsoft does not want to collaborate or cooperate with Apple. Maybe they are picking their time, but Apple thinks Microsoft is missing a big market. In efforts to promote its Surface tablet, Microsoft may be hesitant to make its Office Suite available to other tablet manufacturers.

Morgan Stanley Assessment

Morgan Stanley agrees with Apple. Michael Holt, an analyst at Morgan Stanley, says Microsoft is missing billions of new revenue but not making the Suite available to Apple, Samsung tablets and the like. The analyst says that if Microsoft released Office for iOS (iPad Operating System) at $60.00 per download, 30 percent of all iPad users would purchase the product immediately. His projections cite that Microsoft would gain 200 million iPad users in 2014 alone. That would be an annual revenue stream of $2.5 billion from Apple products alone. The revenue does not account for an Apple Store application commission, which appears to be the sticky wicket at this point.

All Things D

But, there are two views to this story. John Paczkowski, of All Things D, understands the Microsoft position. The company is heavily invested in Surface and is holding the Office iOS as an incentive to buyers to buy the Microsoft tablet. There’s some logic to that. Paczkowski explains;

“And it’s more likely than not that the company is very carefully weighing tradeoffs here and trying to determine if keeping Office off iOS is a sufficient incentive for enterprise to use Surface and other Windows tablets.”

This strategy is putting pressure on Apple, which stock share is in an unusual decline. The two companies have attempted negotiations for an agreeable equity split but it’s not like either company is going out of business anytime soon. The challenge is for Apple to get Microsoft back to the table and sweeten the pot. Both companies stand to make billions on any deal, but when Microsoft is struggling to increase its iPad and tablet sales, it is clear they are holding their trump card until such time as they have both feet on the floor. What’s a few extra billion every year?


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