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