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Apple is spending “$30m a month” on AWS

Apple has quietly become one of Amazon Web Service’s most valuable customers, spending more than $30m a month on its rival’s cloud computing services, CNBC has reported.

The Californian tech giant is planning to expand its AWS footprint in the months ahead as it builds out its services business, which is increasingly likely to compete directly with Amazon.

At a launch event last month, Apple chief executive Tim Cook set out plans to develop an original video arm to rival Amazon’s Prime video service and Netflix, in a bid to offset flagging hardware sales.

While Apple also uses Google Cloud and Microsoft Azure, it spends more with Amazon, CNBC reported. But the company is also planning to expand its internal data centre capabilities.

In 2018, Apple said it would spend $10bn on US data centres over the next five years, with around half of the cash earmarked for 2019. “Apple’s data centers in North Carolina, Arizona and Nevada are currently being expanded,” it said at the time. “In Iowa, preparations are underway for the company’s newest data center in Waukee.”

Apple declined to comment to CNBC.