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High school teens say they'll plunk down $500 for iPhone

post #1 of 144
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Though it hasn't yet hit the market, most high school students are already aware of Apple's iPhone device, with a significant number saying they're interested in forking over the $500 to call one their own, a recent study has shown.

As part of its 13th bi-annual teen survey, researchers at PiperJaffray surveyed approximately 500 high school students at 11 different institutions across the country, asking each about their interest and buying patterns in portable digital audio and online music.

Somewhat surprisingly, nearly 85 percent said they were already familiar with the multi-function Apple gadget, and of those students, 25 percent said they'd be willing to buy one at the previously announced $500 entry point.

Similarly, the PiperJaffray study found that Apple continues to dominate the portable media player market by a large margin, with 82 percent of students who own a PMP saying they own an iPod. Sony, at a distant second, saw its share amongst the teen demographic level off around 4 percent.

"We believe that the teen demographic is a critical component of long-term growth in both markets, and Apple is clearly leading the category, said Gene Munster, a Sr. Analyst at the firm. "Among high school students, it is clear that Apple is successfully carrying its brand from the media player market into the mobile phone space."

Still, Munster said he's modeling for the Cupertino-based electronics maker to sell just 660,000 iPhones during the 2007 fiscal year ending September and just another 4 million in the proceeding 12 months.

"We expect increasingly widespread adoption of the iPhone in more price-sensitive markets after the price gradually comes down," he wrote. "Even if 20 percent of those students (or 5 percent overall) actually enter the market at $500, our estimate may prove to be conservative."



Meanwhile, of the 42 percent of students who said they are interested in buying a portable media player in the next 12 months -- including first time buyers and replacements -- 73 percent expect to purchase an iPod. Though that figure is down slightly from the 76 percent reported by PiperJaffray as part of its Fall 2006 teen survey, Apple's lead remains significant over the second most popular option, which, again, is a Sony player at 11 percent.



At the same time, the percentage of students downloading music continues to rise, up to 83 percent from the 79 percent. However, most (64 percent) are reportedly using free music sharing networks instead of paying for music legally, down just 8 percent from 72 percent in Fall 06. Of those students who say they legally purchase music online, 89 percent said they use iTunes, down slightly from 91 percent.



"Notably, the percentage of music downloaded legally from online music stores (36 percent) is at its highest since this portion of the bi-annual Teen Survey began in Spring 2005," added Munster. That is to say, legally purchased music has its biggest share of the online downloads category since that time. Of those online music stores, iTunes' share remains high [...] with Napster a distant second at 3 percent."

Of those students polled by PiperJaffray, the average age was 16.6 years old. 58 percent of students surveyed were female, 42 percent male.
post #2 of 144
Where did this survey take place? Until I was about 18, $500 wasn't exactly a convenient sum, and even at 18 and after I wouldn't call $500 convenient. Where were the locations of the 11 schools? Beverly Hills? Potomac?
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post #3 of 144
I'll be one of those 18 year olds to proudly own one on launch... An awesome present for graduation at the end of May. (My cell service with verizon is up with at the end of May anyway.. couldn't have been more convenient timing. My dad actually suggested the iPhone as a present. I couldn't say no ! )
post #4 of 144
Title Correction: Spoiled high school teens say they'll whine until their parents plunk down $500 for iPhone

Seriously! Where do kids get that kind of money??!?! I have a decent job and I still can't afford an iPhone.

Geeze...

-Clive
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post #5 of 144
In my humble opinion this survey forgot to look at parents, who are often the people who have to pay the bill. I wonder how many parents are willing to fund a $500+ phone PLUS a data plan.
post #6 of 144
Quote:
Originally Posted by Clive At Five View Post

Title Correction: Spoiled high school teens say they'll whine until their parents plunk down $500 for iPhone

Seriously! Where do kids get that kind of money??!?! I have a decent job and I still can't afford an iPhone.

Geeze...

-Clive

Yep, exactly what I was about to say.
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post #7 of 144
I was always the best at spending my parents' money on the latest and greatest. \
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post #8 of 144
When i was a teen i had a good job to earn some cash for University, i answered phones in the evenings and weekends for a law firm. I gladly shelled out $450 for an iPod and didn't regret it for a second. I also spent the rest of the summers earning and saving for my first years tuition and the $800 snowboard i wanted.

Kids have money and they are more than ready to spend it.
post #9 of 144
my favourite part of this report...
...the number of people planning to buy a zune
post #10 of 144
yeh they should definitely make their own iPhone or their own Celluar Phone. Cause $500 is way too much
post #11 of 144
I'm a senior and 18 and between my job and winnings from playing proffesional chess I have PLENTY of money to blow on this stuff.

I skipped class to watch the keynote when the iphone came out



and I already have my money put aside for it=)
post #12 of 144
Quote:
Originally Posted by Clive At Five View Post

Title Correction: Spoiled high school teens say they'll whine until their parents plunk down $500 for iPhone

Seriously! Where do kids get that kind of money??!?! I have a decent job and I still can't afford an iPhone.

Geeze...

-Clive

hehe. Well, unfortunately being a grown up usually means you need to pay for pesky things like a car, home, insurance, heathcare, food, cloths, furniture, utilities, teh internet, etc.

That said, being a grown up also means you can spend money on things that are a LOT more entertaining the a stupid phone.
post #13 of 144
Quote:
Originally Posted by Splinemodel View Post

Where did this survey take place? Until I was about 18, $500 wasn't exactly a convenient sum, and even at 18 and after I wouldn't call $500 convenient. Where were the locations of the 11 schools? Beverly Hills? Potomac?

I worked close to 30 hours a week in high school. I made $500 in a month.
post #14 of 144
Quote:
Originally Posted by Aqua OS X View Post

That said, being a grown up also means you can spend money on things that are a LOT more entertaining the a stupid phone.

Hookers?

-Clive
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post #15 of 144
Quote:
Originally Posted by Clive At Five View Post

Hookers?

-Clive

Only if you include the line and sinkers!
post #16 of 144
Quote:
Originally Posted by Aqua OS X View Post

In my humble opinion this survey forgot to look at parents, who are often the people who have to pay the bill. I wonder how many parents are willing to fund a $500+ phone PLUS a data plan.

Are you kidding me? There must be at least 2 million kids in Southern California alone with parents willing to spoil them with the latest Apple trend item.

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post #17 of 144
Quote:
Originally Posted by melgross View Post

Only if you include the line and sinkers!

Is that some sort of twisted inuendo that I don't understand in the least, or were you actually talking about fishing?

-Clive
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post #18 of 144
Quote:
Originally Posted by Aqua OS X View Post

In my humble opinion this survey forgot to look at parents, who are often the people who have to pay the bill. I wonder how many parents are willing to fund a $500+ phone PLUS a data plan.

Bingo,

$500 for the phone is pricey but makes for a special present, but who is going to pay for the service?

I'm asking myslef this question.
post #19 of 144
Quote:
Originally Posted by gregmightdothat View Post

I worked close to 30 hours a week in high school. I made $500 in a month.

Dude, you got robbed. I worked 10 hours a week and made that much a month... but I spent it on hot dates... and nefarious mind-bending drugs.

Okay just kidding about the "hot dates" part. -- I mean the drugs.

-Clive
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post #20 of 144
Quote:
Originally Posted by Clive At Five View Post

Dude, you got robbed. I worked 10 hours a week and made that much a month... but I spent it on hot dates... and nefarious mind-bending drugs.

Okay just kidding about the "hot dates" part. -- I mean the drugs.

-Clive

Unfortunately, I had access to neither.

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post #21 of 144
Quote:
Originally Posted by shakerben View Post

my favourite part of this report...
...the number of people planning to buy a zune

Oh yes! Interesting that the survey doesn't even ask about the Zune, grouping it under "Other" at a guess. A good indication of the impact zune has had on the market
post #22 of 144
Quote:
Originally Posted by Carson O'Genic View Post

Bingo,

$500 for the phone is pricey but makes for a special present, but who is going to pay for the service?

I'm asking myslef this question.

Spot on. I *could* afford the phone... I wouldn't be able to spend an additional $1000 (+?) /yr on service/data plan! The plan pricing is going to be critical! I hope Apple/Cingular/AT&T realize this.

-Clive
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post #23 of 144
Quote:
Originally Posted by Clive At Five View Post

Is that some sort of twisted inuendo that I don't understand in the least, or were you actually talking about fishing?

-Clive

Yes, me hearty, fishing! What else would you spend money on?
post #24 of 144
Quote:
Originally Posted by SpamSandwich View Post

Unfortunately, I had access to neither.

How about now?
post #25 of 144
When I was in highschool, over 20 YEARS ago, I saved up over the summer to buy my first computer, the Commodore Amiga. It cost me $1,200. I had no problem working evenings and weekends and putting my money away. \

A couple of months ago, Guy Kawasaki, former Apple evangelist, commented on the iPhone craze and how he didn't think the phone merited such attention. He also noted that his 11 year old is going above-and-beyond the call of duty on chores, in trying to earn $500 to buy one. I don't think this is rocket science, and believe it or not, the standard of living has gone up along with minimum wage, since I was saving money as a kid. I think my wages were $6.25/hr. at the time cashiering and bagging at the neighborhood supermarket. BIG DEAL.

It's very possible the most of you who think $500 is TOO MUCH for kids to get their hands on, should revise your outlook on what it means to be ambitious. In my opinion, if a kid can't earn $500 in 4-6 months of part-time work, they're probably not working very hard. If someone makes $50 take-home pay a week, they'll have $500 in about 2 1/2 months.

Am I missing something? Don't call kids "spoiled" simply because you have a lack of imagination. Not exactly fair.
post #26 of 144
Quote:
Originally Posted by melgross View Post

How about now?

Now I do, but I haven't the time to pursue the girls, and no interest in the drugs.

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post #27 of 144
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Originally Posted by Cleverboy View Post

I don't think this is rocket science, and believe it or not, the standard of living has gone up along with minimum wage, since I was saving money as a kid. I think my wages were $6.25/hr. at the time cashiering and bagging at the neighborhood supermarket. BIG DEAL.

I think it has more to do with people charging anything and everything to credit cards and spending themselves into oblivion.

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post #28 of 144
Quote:
Originally Posted by Clive At Five View Post

Is that some sort of twisted inuendo that I don't understand in the least, or were you actually talking about fishing?

If you get to be good at it, you become a master baiter.




Seriously, I have no idea, I thought I'd finish it like a tawdry joke.
post #29 of 144
Quote:
Originally Posted by Clive At Five View Post

Title Correction: Spoiled high school teens say they'll whine until their parents plunk down $500 for iPhone

Seriously! Where do kids get that kind of money??!?! I have a decent job and I still can't afford an iPhone.

Geeze...

-Clive

Quote:
Originally Posted by Cleverboy View Post

It's very possible the most of you who think $500 is TOO MUCH for kids to get their hands on, should revise your outlook on what it means to be ambitious. In my opinion, if a kid can't earn $500 in 4-6 months of part-time work, they're probably not working very hard. If someone makes $50 take-home pay a week, they'll have $500 in about 2 1/2 months.

Am I missing something? Don't call kids "spoiled" simply because you have a lack of imagination. Not exactly fair.

Well, I think it is some of both.
Knowing how much I pay for baby-sitting, I imagine I am going to be purchasing (if not seeing) several iPhones

I also know there are tons of kids out there with very high end phones who haven't lifted a finger past pointing at what they want.

I work in a middle school. 12, 13 and 14 year olds with the hottest phones... There isn't a teacher in the building who has one that compares with the average student phone, much less with the high end ones. I suspect, but I don't know, that the parents don't have top of the line phones for themselves.

How much have things changed? Before we get all high and mighty about how kids are spoiled now, we need to recall our own pasts...

In the 80s in Philly, it was sneakers. The new Air Jordans or whatever ran well over $100. There were plenty of kids who found a way to get them. Work for it, steal it, guilt the parents, trick the parents, beg--I don't know how they did it, but they were all over!
[Of course, in my household our budget was $20 or less for shoes--had to get the off-brand from the bins. I guess that means that I am due... I guess an iPhone would soothe that emotional scar...]
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post #30 of 144
How do most teenagers get their PSPs? How do most teenagers get their PS3s. How do most kids buy the software and content to play on these devices?

Most importantly how do most teenagers get their iPods?

Why does the iPhone and its price merit exclusion from this group of popular devices?
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post #31 of 144
It's really nothing new. I've seen quite a few ten and eleven-year-olds carrying around iPods, minis and nanos in the last few years. You know these kids didn't work for the money because of child labor laws, so obviously mommy and daddy bought these $200+ toys for them. Back when I was a kid, my parents would have blanched at a $50 toy, but that's not the case with today's parents.
post #32 of 144
I don't know how accurate this survey is to a large percentage of the population. I live in suburbia where most of the kids have a BMW or VW waiting for them when they hit 13, and are nearly guaranteed a newer model by the time they hit 16 (if not sooner). Everyone sports at least one iPod and very few have trouble affording the extremely expensive housing.

However, very few kids in my High School even WANT an iPhone, little less plan on purchasing one. It's the same reason very few kids in my HS want a PS3. Sure it's neat, but it's not quite worth it. Maybe pop culture will over emphasize Apple's new wonder gadget, and it will go from neat to "worth it", but as of right now it hasn't crossed that border. The thing that makes the difference, I believe, is that most of the kids in my HS have some form of common sense. Sure, maybe their parents can afford the device - but is it worth it?
post #33 of 144
Nothing like training our children early in life that it's all about material goods and that they are "entitled" to $500 phones. Yes, some kids will work hard, save their money, and "earn" the phone. I guess that's just training them for the typical American adult life of overwork, "keeping up with the Jones" and forced dual-income families...but I digress. Based on what I see with the kids and families I know, most of these iPhones will be purchased by parents, and probably the service plan, too. It's just sad really. Where I work we have many summer college interns; and it's just appalling the attitude many of them show up with, a marked lack of respect and sense of entitlement that when I was in college would get you kicked out the door within a week.

But be that as it may, good for Apple!
post #34 of 144
Quote:
Originally Posted by melgross View Post

Only if you include the line and sinkers!

funny... considering your post on the other thread about the POSTER not makeing sarcasm clear enough

----

to the people whinging about $500 being too much... heres a hint, dont buy it!

yeah its likely way much money than YOU would have spent as a kid, but inflation is this funny thing, its like time itself, it just happens.

we all make choices, we all balance our needs with our wants... kids have less to worry about outgoings like a mortgage or car payments. its not rocket science
post #35 of 144
Even though I could easily pay $500 for anything when I was in high school, an iPhone would hardly be something that I will be spending that much money on.

Hell, I can business expense one now, but it can't do half the stuff that my Ipaq can.
post #36 of 144
Don't kids save for college any more? I guess not. My parents took every cent I made or was given as a gift and put it towards college for me. The only time I ever got to spend any of that money was when I got my Pismo PowerBook G3 for college.

I went to a private college for my first year after taking out a loan but after sitting on the floor for most of my classes because they accepted too many students, I transferred to a public college when I got my degree. In the end, I only ever took out two loans, the first one for the year at the private college (I'm still paying this loan off) and a smaller one for one semester's tuition. Other than that, I somehow survived getting through college without being $50-$100k in debt thanks to my parents making me save that money.

I can't imagine how my parents would have reacted had I asked to spend $500 or $600 on anything back then, never mind an iPhone.
post #37 of 144
Unlike the iPod, the iPhone also requires a 2 year subscription with AT&T. The logistics of the required service and contract make it harder for the iPhone to become ubiquitous among the younger generation.
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post #38 of 144
I was in high school about 20 years ago also.

I had to work at Arby's to earn enough to get a pair of Air Jordans. My parents complained at the time that we were spoiled in comparison to when they were my age. I think they were right. My Dad tells me he had one pair of shoes most of his high school years, he had to work a paper route to earn money for his high school graduation suit.

I have a younger sister. She is even more spoiled than me. Looking at the younger generation I believe they clearly have a lax work ethic and they have much more sense of entitlement than when I was that age.

A couple of years back I met an 18 year old who was graduating from high school. He said he would feel like a failure if he wasn't a millionaire by the time he was 25. I asked what was his plan for becoming a millionaire. He said he didn't know yet his option were to rap, be an actor, or a football player were all still open.
post #39 of 144
Quote:
Originally Posted by Fran441 View Post

Don't kids save for college any more? I guess not. My parents took every cent I made or was given as a gift and put it towards college for me. The only time I ever got to spend any of that money was when I got my Pismo PowerBook G3 for college.

I think nowadays they go straight from high school to trying to start the next "digg" on the web.

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post #40 of 144
Hey, I know one kind of student that can both afford an iPhone, and need many of its great features - Drug Dealers!

The Calendar and Calculator functions will both be well-used, as well as ounces-grams conversion tools, and there will surely be some great issues of "high times" and "guns and ammo" available for download directly into the iPhone version of Safari! And if there's hands-free answering and auto-music mute, they can receive orders while listening to their favorite trendy urban music remixes!
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