Tim Cook welcomes Office for iPad...and Apple's 30% cut of in-app purchases
Tim Cook publicly welcomed Microsoft Office for iPad via Twitter today, and Apple will be taking a 30% cut of all in-app purchase revenue from the new apps. This is standard practice for the App Store and means that Microsoft will indeed be surrendering a cut of all Office 365 subscriptions it sells that way. So, there's every reason for Apple to be doubly excited. Re/code:
Indeed, Microsoft does offer Office 365 subscriptions within the just-released Word for iPad and the other Office apps and, yes, it is paying the 30 percent cut, Apple confirmed to Re/code. Microsoft declined to comment on the matter.
Apple has taken a hard line with all manner of publishers that want to sell things, even subscriptions that go well beyond the iPad content — if anything is sold in the app, they have to use Apple’s method and hand over 30 percent.
It sounds like a fair amount of money – especially given how much a subscription costs – but it's important for the App Store that Apple hasn't shown any favoritism. Smaller developers have to surrender 30% so the big guns shouldn't ever be allowed to avoid that, either.
It's interesting Microsoft opted to go this route, though. Google offers no in-app purchases in its content delivery apps like Google Play Music presumably to avoid handing Apple any of its revenue. Microsoft is taking a hit in the wallet for offering a better purchase experience to iPad customers.
So, it's a double whammy for Apple. The huge arrival of Office for iPad at long last and a cut from any Office 365 subscriptions sold through the apps. What's not to like about that?