One month after unveiling its new streaming music service, Apple has locked in 11 million trial members, company executives tell USA TODAY.
"We're thrilled with the numbers so far," says Eddy Cue, Apple's senior vice president of Internet software and services, adding that of that sum 2 million have opted for the more lucrative family plan at $14.99 a month for up to six people.
Apple Music, which launched June 30, costs $9.99 a month for individual access to 30 million songs as well as human-curation playlists and a live radio station. There is an initial free-trial period of three months. Assuming all the trial memberships are converted into paying customers come October, Apple would already boast half the paid memberships of reigning streaming champ Spotify, which launched nearly a decade ago.
July also brought a fiscal high-water mark for the company's App Store, which did a record $1.7 billion in transactions, "with particular momentum in China," says Cue. That brings the total amount paid to app developers to $33 billion, up from $25 billion at the end of 2014.
Those bright numbers stand in contrast to the recent stumble of Apple's normally high-flying stock (AAPL), which has fallen some 14% off a $134.54 high on April 28, erasing nearly $115 billion in value. Investors are concerned that Apple's lucrative smartphone business in the U.S. is reaching a saturation point, while the promise of a booming China market could be impacted by growing handset competition in Asia.