Spotify Lands On Apple App Store Top Spot As Tim Cook Touts Apple Music

There was still steam coming off of the headlines announcing that Apple Music's subscriptions have already soared to a third of the size of Spotify's premium users, but before the headlines could cool, app trackers have reported that Spotify has finally hit the top spot in the Apple App Store.

News of Spotify's latest landmark doesn't take anything away from the success of Apple Music. It evidences the growth of Spotify.

Spotify has earned the banking details of 20 million music lovers and has gotten about 55 million others to sit through ads to enjoy the streaming music service for free.

The months-old Apple Music service has amassed an impressive 15 million total users, about 6.5 million of which pay for the premium service. The figures on Apple Music's success were shared by Apple CEO Tim Cook on Monday.

"We have music experts, just like the DJ when we were growing up...that are deciding what's next," Cook said. "It brings the art back in music."

There still a lot of land to cover to catch up with Spotify. And Spotify doesn't appear to be slowing down.

Spotify had hovered around the number three spot in the Apple App store in the US since the start of the year. However, Spotify finally hit the top of US' charts for top grossing apps this month.

The two services are a lot alike, though there have been complaints about the complexity of Apple Music's interface and reports of bugs. Meanwhile, the more established Spotify enjoys an interface that has benefited from a stream of updates to its mobile and desktop apps.

One of Apple Music's big selling points is that it has playlists curated by musicians and experts, though Spotify uses a similar curation model.

"I'm finding personally that I'm discovering a whole lot of music that I wasn't listening to before," he said. "I think it's fabulous. And to have over 15 million on there, and 6.5 million in the paid category, I'm really happy about it, and I think the runway here is really good."

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Apple tests smartwatch market with quiet debut of Cook's first product

(Reuters) - The Apple Watch will launch with a whisper rather than a bang on Friday, an unusual start for the company that may reflect early uncertainty about demand for Apple Inc (AAPL.O) boss Tim Cook's first new product.

The company has not revealed how many orders it has received in the run-up to the April 24 launch, a contrast to previous launches of iPhones and iPads. And Apple stores will not have any watches to sell on Friday, even though some luxury shops around the world will.

Apple was unsure whether the watch would create the lines snaking around stores that the company has historically seen with its iPhones, said Gene Munster, an analyst at Piper Jaffray.

"The smaller launch can allow them to see how it goes and it does remove some of the line expectation and risk," Munster said. "If they did it the old way and the lines weren't good, that's a bit of a problem."

Demand turned out better than expected, according to Munster, who predicts more than 2 million watches will be sold in the quarter ending in June. FBR Capital Markets senior analyst Daniel Ives raised his 2015 estimate to 20 million from 17 million, based in part on online order backlogs.

"There was a question over whether the trajectory and demand for wearables in the Apple ecosystem was there and real," said Ives. "But it's a resounding yes." Now Apple faces the question of whether confused consumers will swamp Apple Stores on Friday.

"A lot of consumers are going to go to the store on Friday trying to buy a watch," he said.

Apple itself said that some customers will get watches faster than promised. "Our team is working to fill orders as quickly as possible based on the available supply and the order in which they were received," Apple said in a statement on Wednesday.

Apple has settled for the simplicity of online orders in the face of difficult logistics for watches: there are 38 variations it would need to keep in stock, when accounting for the various sizes, styles and bands, with prices ranging from $349 for the Sport version to $10,000 and more for the gold Edition.

In fact, the only watches on sale on Friday will be at a handful of upscale boutiques and department stores that Apple courted to help position the watch as a fashion item.

The Corner in Berlin, Maxfield in Los Angeles and Dover Street Market in Tokyo and London all say on their websites that they will have watches in store on April 24. Maxfield will open two hours earlier and is preparing for crowds.

Apple will likely use preorders to perfect the consumer experience by giving watch customers more attention in stores and adding apps in time for the holiday season, said Shannon Cross, analyst at Cross Research.

"They're looking at this from a long-term standpoint and want to make sure it's successful out of the box," Cross said. "A lot of smartwatches out there end up being self-aware."

(Additional reporting by Noel Randewich in San Francisco and Piya Sinha-Roy in Los Angeles; Editing by Peter Henderson and Lisa Shumaker)

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