At today's Apple press event, CEO Tim Cook just told the audience that it's making its iWork suite free on all future iPhones and iPads. Previously, the suite cost $79,
iWork includes several productivity apps that compete indirectly with Microsoft Office, which is only available in very limited form for iOS as part of an Office 365 subscription. Those apps are Pages (a word processor), Numbers (a calculations product), and Keynote (for presentations). Cook also announced that iMovie (for creating videos) and iPhoto (photo retouching) will also be free.
Making these apps free will all-but eliminate consumer demand for Office on iOS devices, although business users with Office 365 subscriptions may still find a use for it.
Microsoft has come under lots of criticism over the last two years for not porting a full working version of Office over to iOS. Now, it's probably too late for any such port to matter.