Apart from a tight race, Apple and Amazon share a mutual business correlation. Apple spends approximately USD 30 million per month on Amazon’s cloud. This huge investment on cloud technology reflects the company’s conviction to deliver services swiftly and smoothly.
As iPhone is gradually reaching market saturation, the company is focusing more on its online services to reap revenues. Recently, company discontinued disclosing its unit sales figures for iPhone and other hardware. Instead, it is now sharing the profit ratio for its web services business. This includes iOS App Store, iCloud, AppleCare, and Apple Pay. It also unveiled its subscribed services for magazines and videos.
What Led Apple to Join Hands with Amazon?
There are 1 billion active devices at any point of time. To serve this huge mass, the company has to deal with a large number of computing and storage requirements. As a result, it is investing heavily in developing its own cloud infrastructure. This was confirmed in January 2018, when the company announced its plans to invest US$10 billion on data centers in the U.S in the next five years. Apple also made a statement that it would spend US$ 4.5 billion of that amount in 2019 itself.
At the end of March 2019, Apple’s total spending for Amazon web services was approximately US$30 million per month in the first quarter. This amount is 10 percent higher than the amount it used to pay a year before. If it keeps on using AWS at the same level, its annual expenditure shall reach up to US$360 million.
With such a huge investment, the company joins the league of big players associated with Amazon who subscribe its cloud services. On the other hand, Amazon looks to be in quite a profitable condition with Apple and other companies opting AWS for their business.