When Amazon releases numbers on first-quarter 2019 results Thursday, RBC Capital Markets expects the company to report $58 billion in revenue, with GAAP operating income coming in at $3 billion.
Part of the revenue comes from Apple. In fact, $30 million monthly goes into Amazon Cloud, according to one report. Apple’s deal with Amazon Web Services (AWS) will cost about $1.5 billion during the next five years.
RBC Capital Markets estimates that AWS leads the cloud computing space with about 50% market share.
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.
It’s well documented that Apple has been increasing its services as the iPhone approaches saturation in the phone market.
Apple also is investing to build its own cloud infrastructure. In January the company announced plans to spend $10 billion on data centers in the U.S. within the next five years, about $4.5 billion this year.
In February 2018, Apple confirmed it uses Google Cloud for iCloud, stated in a file on its website. CNBC reported that Amazon had been using iCloud since 2016, but Apple never confirmed it.
CNBC also reported that Pinterest will purchase more than $750 million in cloud services from Amazon through July 2013.
Lyft plans to buy $300 million through 2021.