Apple blocks SkyDrive app for iOS until it sees a cut of revenue
Microsoft's SkyDrive cloud storage app for iOS has just been put on hold thanks to Apple demanding a 30% cut from its in-app revenue
The SkyDrive app for iOS has been stopped from going on general release through the App Store.
This is thanks to Apple demanding a 30% cut in revenue made through the application by Microsoft. While with every SkyDrive account, Microsoft offer a generous 7GB free, any additional storage will require you pay up, and it's this pie Apple wants a slice of.
How big a slice? 30% according to Microsoft-News and The Next Web. Despite it being easy to assume Apple is just out to make Microsoft's life difficult, this isn't an unprecedented figure. Dropbox has been forced to accept Apple's conditions in the past, it just so happens Microsoft isn't playing ball, resulting in something of a stalemate.
The reason behind Microsoft's trepidation to accept Apple's terms is as follows: Apple will get a 30% cut from the initial fee, as well as all renewals. This means that if Microsoft's dreams come true and its Windows Phone platform takes all of Apple's marketshare in the next few years, Microsoft would still be paying Apple 30% of every SkyDrive subscription payment first made on an iPhone.
Microsoft has a few options here. On the one hand, it can go the Dropbox route and pay up. On the other, it can deny iOS users continued SkyDrive support. Finally, Microsoft can seek to take legal action.
Unfortunately for SkyDrivers with iPhones, it doesn't look like the issue will be resolved anytime soon.