Apple Is Spending Over $30MA Month On AWS Cloud, Report Says

Apple Is Spending Over $30MA Month On AWS Cloud, Report Says

Troy Powers
April 26, 2019

At the rate of $30 million a month, Apple's AWS bill for the whole year would cross $360 million.

Early past year, the company announced a $10 billion plan to build multiple data centres in the US.

Apple has used AWS for iCloud storage in the past but has not publicly said if any of its other services also use AWS or other cloud providers.

However, for the moment it still heavily dependant on its rivals for cloud services, particularly AWS.

Apple has been identified as the largest customer of Amazon Web Services, splashing tens of millions of dollars each month on public cloud infrastructure supplied by its rival.

Internationally, there are more than a billion recorded users of Apple devices every month.

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But as we gleaned from the company's overhyped presentation last month, Apple had little to show us beyond those famous faces. Total revenue increased 22% year-on-year to $4.5 billion, while subscriber count grew 25% year-on-year.

Visit Business Insider's homepage for more stories. Of course, it should also be noted that Apple had previously reported it also uses some of Google's cloud services as well as some technology from Microsoft, too.

According to analysts, Apple's ongoing transformation into a service provider and entertainment giant will amplify the cloud expenditure.

The monthly outlay, which is part of a multiyear agreement, makes Apple one of AWS' largest customers, according to the CNBC report, which cited unspecified people familiar with the arrangement.

For Amazon, AWS offers an average of 11 percent of the total annual revenue, and 59 percent of the parent company's operating income.

The deal highlights the complex relationship between the two companies: Apple and Amazon compete in businesses like movie and music sales - but Apple relies on AWS to power iCloud storage.

When Amazon releases numbers on first-quarter 2019 results Thursday, RBC Capital Markets expects the company to report $58 billion in revenue, with GAAP operating income coming in at $3 billion.