Apple Reportedly Spends Over $30 Million on Amazon Web Services Every Month

Posted April 26, 2019

Apple's AWS spend dwarfs that of other tech firms such as Lyft and Pinterest.

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.

Despite all this, Apple now spends more than $30m a month with AWS, people familiar with the matter told CNBC - more than any other publicly announced customer.

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In addition to its monthly AWS tab, Apple is investing heavily in its own cloud storage infrastructure, In December the Cupertino firm revealed it expects to spend $10 billion over the next five years on US -based data centers, $4.5 billion by the end of 2019.

Apple pays Amazon Web Services more than $30 million per month for cloud services in 2019, according to CNBC, which equates to $360 million every year if Apple's spending remains consistent. That is a gain of more than 10 percent from the same period a year ago. The iPhone maker is said to have recently committed to spending $1.5 billion over a five-year period.

If Apple maintains that level of AWS spending through 2019, its annual AWS spending would top $360 million after spending about $350 million previous year, CNBC reported, citing an unnamed source.

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As Apple increasingly turns its focus toward bringing in revenue from services and not just hardware, it's depending on a rival to help provide some of the necessary infrastructure. But Apple look different when it grasps its cloud share, the company not only investing in its iCloud as well as venturing in Amazon's cloud.

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.

In a February filing with the U.S. Securities and Exchange Commission, Amazon.com reported $19.3 billion in customer commitments - primarily related to AWS - for contracts with original terms that exceed one year as of December 31, 2018.

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