Apple iPad Microsoft Office: It is easy to see why Microsoft Corporation (NASDAQ:MSFT) would not want to offer its industry-standard Office solution to Apple Inc. (NASDAQ:AAPL) iPad devices. While this may seem like a conflict of interest, being that MSFT is trying to get more heavily involved in the tablet market, it is important to note that the company is likely losing billions of dollars because of the decision.
A recent AppleInsider article took a close look at this situation, quoting Morgan Stanley’s Adam Holt along the way. Here is a look at what exactly is going on:
“Morgan Stanley’s Adam Holt says that, while Microsoft has so far held back from bringing Office to iOS, the ongoing popularity of Apple’s mobile operating system may prove too big a draw, especially if Windows RT and Windows 8 tablets continue to underperform in sales. With Surface RT estimated to have sold only between 900,000 and one million units in the fourth quarter of 2012, even improved sales brought on by the Surface Pro are likely to pull Microsoft only to a 10 percent share in the tablet market in 2013, by Holt’s estimate.”
“Holt says that a 30 percent attach rate on the iPad’s install base would generate $2.5 billion in additional revenue.”
Is there any good reason why Microsoft Corporation (NASDAQ:MSFT) may be making this decision?
For starters, the company needs to give its tablets a boost in any way possible. By keeping the Office suite away from Apple Inc. (NASDAQ:AAPL) there will be some exclusivity with its products, potentially pushing people interested in this software towards the Surface Pro and RT tablets.
The article goes on to add:
“Holt’s analysis paints a difficult choice for Microsoft: abandon the one advantage it has over competitors in the hopes that it will reap more in revenues, or hold on to that advantage and continue on, albeit on a smaller platform.”
Do you think Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) will ever come to an agreement here?
Check back here for more updates on Apple iPad Microsoft Office.
DISCLOSURE: I have no positions in any stock mentioned.
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