When Cash-Cows Collide… MS and Apple Spat over Office on iOS

ms_apple_cows-dec2012

These days, both Microsoft and Apple derive a significant portion of their revenue from what are – effectively – ‘cash cows’, with relatively small investment costs giving large – and continuing – returns..

Now, the companies are fighting over two of these..   MS Office from Microsoft, and the App Store from Apple..

http://allthingsd.com/20121211/microsoft-pressing-apple-to-take-a-smaller-cut-on-sales-inside-office-for-ios/

Basically, both think that their respective product / service is sufficiently desirable – even essential – that they do not need to ‘negotiate’ over pricing and commissions – for Apple takes an eye-watering 30% from all App Store ‘commercial’ products sold, and MS Office has been ‘easy money’ for Microsoft, for years, now…..The background to all this hissy-fit posturing, is that Microsoft is trying to establish its own version of the App Store, with Windows 8 and RT, and would dearly love to extend this into Apple’s territory..

My opinion?      I expect that after a certain amount of posturing, the two will come to an ‘accommodation’ in time..   That is, until either of them decides they can afford to upset the other, again..

© Robert Gadsdon, 2012

Apple Logo (TM) Apple, Inc.     M/S ‘Square’ (TM) Microsoft, Inc.    Cows picture © Robert Gadsdon, 2012!


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