Microsoft Loses $2.5 Billion Every Year


Bangalore: Microsoft made a bold move when the software giant decided to ditch iOS and restrict their office suite to windows platform. Now, the tech giant from Redmond is paying for its mistakes, quite literally, with billions of dollars. 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 offers the 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 today the Office suite is available only on windows platform and more importantly on suface tablets which are the rivals of iPads, which could prove to be a costly gamble. 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."

How long can Microsoft refrain themselves from offering their services to users who prefer iPads and other apple products to their surface tablets. Is this a childish whim or does Microsoft actually believe that in doing so people will soon begin to migrate from devices which do not run on Windows? Whether a market forecast or a juvenile grudge, this ploy is playing out quite badly for the company which was yesterday’s leader in the tech world.

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