Apple spent over $30 mn on Amazon Cloud in Q1 2019

Apple previously revealed that it uses AWS for its iCloud storage, but it hasn't divulged whether it uses AWS for other Apple services, CNBC said.

Apple customers use more than one billion of its devices each month which has led its computing and storage requirements to grow immensely.

According to two people familiar with the spending, in the first quarter of 2019, Apple's spend average more than $30 million a month which is 10% more than the same period in the first quarter of 2018. Apple is spending more than $30 million per month on Amazon's cloud.

This solution to Apple's cloud service challenges seems to be temporary, though, as the company has been investing heavily in building its own infrastructure.

iPhone maker Apple and Amazon may be business rivals. The company is though putting evermore resources into its cloud infrastructure.

For some time now, Apple's top product - the iPhone - has been experiencing saturation status in the markets because of which the company has begun pointing more to online services as a key contributor.

Apple's focus is shifting to software services ranging from Apple Music, iCloud to TV Plus video and News Plus magazine services.

However, Apple is also building up own data center capacity: In January 2018, Apple earmarked a budget of $10 billion for data centers in the US with half the amount going to be spent in 2019.

CNBC also reported that Pinterest will purchase more than $750 million in cloud services from Amazon through July 2013.

Tech giant Apple and Amazon may be rivals but the Cupertino-based company is dependent on Amazon to offer its services to users.

Earlier this year, Apple agreed to spend at least $1.5 billion on AWS over the next five years as part of an agreement.

If Apple continues to use AWS at those levels for the rest of the year, its annual spending on Amazon's cloud services would exceed $360m.

For some points of comparison, Pinterest disclosed in its IPO filing that it's spent $309 million with Amazon Web Services since 2017, while Lyft has told investors that it's committed to spending $300 million with AWS by the end of 2021.


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