Absence from iPad costing Microsoft $2.5 billion yearly

Microsoft's absence from Apple's hot-selling tablet iPad may be costing the world's biggest software maker a fortune. In a research note, Morgan Stanley analyst Adam Holt said that Microsoft is losing as much as $2.5 billion per year by not providing its Office Suite on Apple's iOS.

Holt estimated that if Microsoft begins offering Office Suite - which includes programmes like Word, Excel, PowerPoint etc - at a price of $60, 30% of iPad users are likely to purchase the app. In his note, he said that approximately 200 million people will be using iPads in 2014, thus allowing Microsoft to rake in $2.5 billion for the year, even after paying Apple the 30% commission it charges.

As of now, the Office Suite is only available on Windows platform and more importantly on Surface tablets, the rivals of iPads. In his note, Holt said, "While Microsoft has resisted offering a full version of Office for the iOS, the company may ultimately decide there is more upside with Office on iPads, particularly if Windows tablets fall short of expectations."

On Windows 8, Holt also said that Microsoft's new operating system provides the company with a new avenue to generate revenue. However, the growth potential of this touch-friendly platform has been hampered by the limited availability of Windows-powered touchscreen devices. Another factor for this is that enterprises have slowed down in upgrading the software they use in office computers.

Source: http://timesofindia.feedsportal.com/fy/8at2Etf0kCv3H47V/story01.htm

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