Will Apple (AAPL) Stock Benefit From Potential Apple Music Updates?
NEW YORK (TheStreet) -- Apple (AAPL) - Get Report plans to update Apple Music after the music streaming service received mixed reviews and got off to slow start last year, according to Bloomberg.
The Cupertino, CA-based iPhone maker is improving the user experience on the application to make it more intuitive for subscribers.
Apple Music will also be altered to integrate the streaming service with music purchases as well as the online radio, sources told Bloomberg.
"Apple Music is underwhelming," BGC Partners analyst Colin Gillis told Bloomberg. "They have subscribers because of their platform. If you have that kind of subscriber base, you should have millions of subscribers."
Apple is expected to announce the changes to the service, which costs $10 per month, at the Worldwide Developers Conference in June, Bloomberg added.
Service revenue from applications like Apple Music are expected to offset declines of iPhone sales, TheStreet's Jim Cramer, portfolio manager of the charitable trust Action Alerts PLUS, explained on Tuesday.
Shares of Apple are down 0.38% to $94.82 in pre-market trading on Wednesday.
(Apple is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)
Separately, Apple has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins.
You can view the full analysis from the report here: AAPL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
