NEW YORK (TheStreet) -- Shares of Apple (AAPL) are slightly higher at $114.78 in pre-market trade after it was reported that the company will bundle the subscription music service it acquired from Beats into its iOS operating system early next year, instantly making it available on hundreds of millions of iPhones and iPads - and ramping up pressure on Spotify, the market leader in music streaming, the Financial Times reports.
The inclusion of the paid for Beats service in an iOS software update could happen as early as March, sources say. The move represents Apple's first attempt to capitalize on Beats since it bought the headphone maker and streaming service from Dr Dre and Jimmy Iovine for $3 billion this year, the Times noted.
It will also be Apple's first big push into subscription music at a time when iTunes downloads are in decline and some high-profile artists such as Taylor Swift remain skeptical about the economics of streaming, the Times said.
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."