Apple reportedly enters a $1.5 Billion deal with Amazon’s Cloud service

Galtero Lara
Abril 23, 2019

The relationship between Apple Inc. and Amazon.com Inc.is one of the most prominent examples of the so-called coopetition that has permeated the tech industry.

As the smartphone market reaches peak saturation, manufacturers such as Apple or Samsung are turning more towards software and services, and less towards actual devices. In fact, $30 million monthly goes into Amazon Cloud, according to one report. With Apple betting big on its Services business, it's quite obvious that it will need to use cloud services more than ever before. And that spend will continue into the future: according to the report Apple has signed a multiyear deal with AWS that commits it to spending $1.5 billion over a five-year period, which is a drop in the bucket for Apple but a sizable win for AWS.

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The cloud infrastructure is required for online services, such as iOS App Store, iTunes, Apple Care, ApplePay, iCloud, and a new subscription service for video and magazines.

Part of the revenue comes from Apple. With the 2018 iPhones reportedly doing not too well and shipment numbers not hitting the mark, Apple's Services division becomes even more critical. There are a lot of technology companies across the world that pay hefty sums to the Jeff Bezos-owned company for their cloud services.

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