CNN-Fortune on Adam Holt’s estimates that Microsoft could be leaving $2.5-billion on the table by not making Office available for iPad.
Assuming a similar 30% attach rate in 2014 on roughly 200 million iPads at an average selling price of $60 comes to more than $2.5 billion in extra revenue per year, even after Apple takes its 30% cut off the top.
The problem I have is with Holt’s attach rate. 30-percent? That’s incredibly optimistic considering the quake of change on the landscape.
iPad users are moving away from Microsoft Windows PCs, and Windows Phone devices in huge numbers. And, so far, the Surface tablet with Windows RT (for tablets) is a flop.
In marketing, differentiation is a key component for success. If Office runs on Microsoft tablets, and Android and iPad tablets, how does Microsoft continue to sell their own tablets? What’s the incentive to buy one?
And, who needs Office on an iPad?