Microsoft May Be Losing $2.5 Billion Every Year That Office For iOS Is Not Released

Posted Feb 16, 2013

Microsoft has not released Microsoft Office for iOS yet and it is not known whether they will or not.  Microsoft Office is currently available for the Windows and Mac operating systems.  On mobile devices Microsoft made Office available only on Windows Phone, but not iOS and Android.  Morgan Stanley analyst Adam Holt is estimating that Microsoft is losing around $2.5 billion per year from potential iOS customers that want to use Microsoft Office on Apple iOS.

Holt believes that 30% of Apple iPad users would buy Microsoft Office if it was released right now.  The number of iPad owners are expected to be 200 million by 2014.  This means that around $2.5 billion in revenue would be generated after Applet takes their profits.  This number would be higher if Microsoft Office was released on the Apple iPhone and Apple iPod Touch.

All things considered, Microsoft Office is a major component of the company’s whole business.  Making it available on other platforms will encourage consumers not to use PCs.  This means less business for the Windows operating system.  Is that $2.5 billion worth it?  I’ll let the financial geniuses in Redmond handle that one.

[Source: UberGizmo]