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Fortune reports today on a Wall Street analyst’s premise that Microsoft is leaving billions of dollars on the table by not offering MS Office on the iPad. The analyst is Adam Holt at Morgan Stanley, and his figure for how much Microsoft may be missing out on is $2.5 billion.
His number is based partly on the fact that Microsoft Surface tablets have poor sales and very low market share thus far. He also argues that a much higher percentage of Mac users (30-40%) install paid versions of Office than their Windows PC counterparts – and then assumes a similar 30% install rate for around 200 million iPads.
Check out the Fortune article for all the details on how Holt does his figuring. I wouldn’t venture any sort of guess on the accuracy, or lack thereof, of his numbers – but I absolutely agree that Microsoft is losing out by not selling Office on the iPad.
I’ve said for a long while that Microsoft has much more to lose by keeping Office off the iPad than Apple does. Apple’s won iWork suite and other Office-compatible suites sell well and presumably far better for the absence of Office. iPad users have viable alternatives by now, but I know that lots of them would love to buy Office for iPad apps.
Isn’t Microsoft supposed to be a software company? I don’t see how continuing to deny the success of the iPad, or writing it off as a flash in the pan, benefits them. There’s a potentially massive market there for Office, and they just continue to ignore it. They might want to take a look at how Google operates despite being an Apple ‘rival’.