FBR Capital Says Music Streaming Only 'Tip Of The Iceberg' For Apple, Streaming TV To Come In Next 6-9 Months

Apple Inc. AAPL has decided to reverse its decision of not playing artists royalties for the three-month trial period of Apple Music after singer Taylor Swift announced on Sunday that she won't allow the tech major to stream songs from her album '1989' for free.

Daniel Ives from FBR Capital Markets was on CNBC Monday to weigh in on this.

Shows Flexiblity 

"Look, I continue to view this (streaming service)as sort of a work in progress," Ives said. "They are going to be flexible, they need this to be successful [on streaming] not just in the music where they go head to head with Spotify. And I think, this shows the flexibility how Apple is doing this."

"And just how important these next 3 months are to get users on to the platform, especially as view this [as] tip of the iceberg the streaming service for Apple. It's music today, eventually 6 to 9 months, we think, it's streaming TV."

Green Path In near-Term

Ives was asked for his outlook on Apple. He replied, "The main indicator for Apple, it's about upside in iPhone. We still think, we have 3-4 quarters of upside here. China is the [...] fuel in the engine. Ultimately] we put that together and that's going to drive the stock higher from here. But this is really more about that next step in terms of streaming, in terms of Apple Watch where Cook knows [it has to fill....growth areas for 2016, 2017."

"Near-term we see very green path on this iPhone growth as well as China, I mean, that's really the fuel in the Apple growth story, I think, what the Street is going to be focussed on especially [...] results," Ives concluded.