NEW YORK (TheStreet) -- Apple (AAPL) - Get Report shares are rallying 1.03% to $110.18 in pre-market trading as the tech giant began offering Apple Music, its music streaming service, in China today, Bloomberg reports.
"Customers in China love the App Store and have made it our largest market in the world for app downloads," said Eddy Cue, Apple's senior VP of Internet software and services.
Following a three-month trial membership, Apple will start charging a monthly subscription fee of 10 yuan or $1.57, Bloomberg noted.
In addition to the music streaming service, movies and electronic books will also be available to consumers in China.
Separately, according to research firm Wristly, the average selling price of the new Apple Watch is $529. Depending on what models users buy, whether it's a sport model or the one with solid gold designs, prices can range from $350 to $17,000, CNBC.com said.
Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate APPLE INC (AAPL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- APPLE INC has improved earnings per share by 44.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLE INC increased its bottom line by earning $6.43 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($9.13 versus $6.43).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income increased by 37.8% when compared to the same quarter one year prior, rising from $7,748.00 million to $10,677.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 36.6%. Since the same quarter one year prior, revenues rose by 32.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full analysis from the report here: AAPL