The New York Times reports that Microsoft has already developed the Office iPad app, but is scratching its head at what to do in terms of a launch date and price point.
In terms of price, there are already several Office imitations available for the iPad, with Quickoffice - now owned by Google - among the better of those. Prices in this area generally start from free and go up to around $19.99. Microsoft will also have to contend with Apple's own iWork suite of office applications, although Pages, Numbers and Keynote are not especially cheap at $9.99 apiece.
The issue over the release date is arguably more problematic for Microsoft because it will clearly want to avoid the Office iPad app having a detrimental impact on Windows 8 tablet sales, which could certainly be the case if the rumors are true and the two launch within weeks of each other.