Trending News|November 14, 2014 09:02 EST
Microsoft Office 365 App Free on Mobile: Company Changes Marketing Strategy
In a change of strategy, Microsoft is removing the fee for its Office software used on iPhones, iPads, as well as Android devices.
Until the announcement, those who wished to create Word documents, PowerPoint presentations and Excel spreadsheets using their smartphones had to have an existing subscription or get a subscription, and pay a corresponding subscription fee.
But because of the recent roll-out, from charging a fee of $70 per year, smartphone users can now access the Office 365 mobile apps, free of charge.
However, the free Office 365 only applies to certain devices, since Microsoft will still charge for Office 365 use on laptops and PCs.
Microsoft's move was said to have been done to highlight Microsoft Chief Executive Satya Nadella's statement that the company will strive to maintain not only a high profit, but more importantly, a high number of users.
The Office franchise has been widely popular for Apple and Android users, and Microsoft is hoping that removing the subscription fee for Office 365 will encourage more people to "try and presumably pay for Office apps" in the future.
In a statement released to the Wall Street Journal by John Case, Microsoft Office corporate vice president of marketing, he said that it is becoming clearer to the company that in order for them to be the "best paid solution," they first have to be the "best free solution"
"We want as many users as we can get," he said, adding that the move doesn't mean that the company is conceding to its rivals.
While many may think that the subscription fee removal is a risky move for Microsoft in the profit department, the WSJ pointed out that 90 percent of the company's revenue actually comes from business customers and not Office sales, so the profit is not really affected by the move.