Apple Inc. AAPL has partnered with Sonos to make Apple Music service available on Sonos WiFi connected speakers.
Initially, the service will be launched on Dec 15 as a beta version while general availability is expected in early 2016. Apple’s collaboration with Sonos is the first of its kind for the Cupertino-based tech behemoth. It is the first time Apple Music will be “integrated” into third party hardware. Rumors about this collaboration had first surfaced in June.
As per analysts, the collaboration with Sonos spells opportunity for Apple as the former has become a force to reckon with in the connected audio space. The company has been in business for around 13 years and already boasts $1 billion in sales. As per Eddy Cue, Apple’s senior vice president “We’re thrilled to be working with Sonos to provide the Apple Music experience in even more places fans enjoy music.”
Analysts observe that Apple played a significant role in boosting Sonos’ sales. The launch of Sonos’ iPhone app drove sales as the company was not required to “release separate controller for the speakers”. The company already has partnerships with Spotify, Deezer, and Pandora Media Inc P to offer their streaming services on its WiFi connected speakers.
Sonos CEO John MacFarlane stated “the introduction of Apple Music marks an inflection point for streaming and its mass adoption”.
Apple Music was launched on Jun 30, 2015. Apple Music functions as a subscription-based service, giving subscribers access to the full iTunes library, as well as playlists and channels that are hand-curated by a team of Apple employees for $9.99 a month.
Apple Music is basically a reboot of the Beats Music service, a part of Beats by Dr. Dre, which Apple purchased last year for over $3 billion. The company recently shuttered its Beats Music service.
As per the latest statistics, of Apple Music’s 15 million total users, 6.5 million are paid subscribers. In less than four months, the music streaming service has amassed nearly a third of the paid subscribers that its main competitor Spotify has enrolled in seven years. And importantly this takes into account only the iOS user base! Apple recently launched the service for Android devices, which is further expected to add to its user base, given the fact that the market share for Android users is much more than iOS, in terms of volume.
The move will likely strengthen Apple Music and the company will have its focus on developing the service furthermore, thereby gaining an edge over its peers.
Currently, Apple has a Zacks Rank #3 (Hold). Some better-ranked stocks in the tech sector include Facebook, Inc. FB and LendingClub Corp. LC. Both have a Zacks Rank #2 (Buy).
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