Amaya Toman Apple and Amazon are mostly seen as competitors. But when it comes to cloud services, on the contrary, they are partners. It is Amazon's web services (AWS - Amazon Web Services) that Apple uses to operate a number of its services, including iCloud. AWS costs Apple more than $30 million a month.
According to a report by CNBC, Apple will spend up to $300 million a year on services operated by Amazon. Apple has said in the past that it uses AWS to run its iCloud, and admitted that it may want to use Amazon's cloud system for its other services in the future. The Apple News+, Apple Arcade or even Apple TV+ platforms have recently been added to Apple's portfolio of services.
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Pavel Jelic Apple's monthly costs for running Amazon's cloud services rose 10% year-over-year as of the end of March, and Apple recently signed a deal with Amazon to invest $1,5 billion in its web services over the next five years. Compared to companies like Lyft, Pinterest or Snap, Apple's costs in this area are really high.
Ride-sharing operator Lyft, for example, has pledged to spend at least $2021 million on Amazon's cloud services by the end of 300, while Pinterest has committed to spending $750 million on AWS by mid-2023. Snap puts the amount it will spend on AWS by the end of 2022 at $1,1 billion.
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Apple has recently begun to focus on services as its core product. He stopped sharing exact data on the number of iPhones and other hardware products sold, and on the contrary, he started bragging about how much profit he generates from services that include not only iCloud, but also the App Store, Apple Care and Apple Pay.
Source: CNBC
