Interest in iPhone high as iPod, iTunes dominate teen market

Posted:
in General Discussion edited January 2014
A majority of teens own an iPod, many use iTunes, and more than one in five intend to purchase an iPhone in the next six months, a new survey has found.



The of the 18th bi-annual Piper Jaffray teen survey shows that Apple's share among teen consumers continues to grow. The results, revealed in a research note to investors Tuesday, were based on a survey of approximately 600 teenagers, who were queried about their buying patterns and preferences



Apple's smallest market among teens -- the iPhone -- is poised to greatly expand. While 15 percent of those surveyed currently own an iPhone, 22 percent intend to purchase one in the next six months.



"We believe the $99 iPhone 3G has been a meaningful part of share gains in the last six months," Senior Research Analyst Gene Munster said. "Previously, teens were indicating that the plan pricing and handset pricing were too high for them (and their parents) to buy iPhones. The lower pricing appears to have been a catalyst for share gains."







Apple has maintained its utter dominance of the portable media player market, with an 87 percent total share, up from 84 percent one year ago. Coming in second was Microsoft with 3 percent, followed by Sony with 2 percent.



Those who plan to buy overwhelmingly choose Apple as well, though Microsoft's share of that question grew significantly. Of those who plan to buy a media player in the next 12 months, 74 percent said they will choose an iPod, while 13 percent said Zune, and 9 percent opted for a Sony product.



"Apple's dominance in the PMP market remains largely unchecked," Munster said, "and it is clear to us that Apple has captured the 'cool factor' among high school students across America."







Only 40 percent of surveyed teens legally purchase music online. But of those that do, a whopping 93 percent said they use iTunes to purchase songs. That's the same total from one year ago. The next-largest provider is Rhapsody, with 2 percent.



But 57 percent of teens use peer-to-peer networks to download pirated music. While still high, that's down from 64 percent two years ago.







Piper Jaffray has maintained its overweight rating for AAPL stock and price target of $235 per share.



"We believe that the teen demographic is a critical component of long-term growth in the digital music and mobile markets," Munster said, "and Apple is taking its leading position in music and mobile markets."

Comments

  • Reply 1 of 16
    Assuming they can hold on to some semblance of this market, there's the future stock price growth potential!
  • Reply 2 of 16
    SpamSandwichSpamSandwich Posts: 33,407member
    I've seen a lot of people carrying around both iPhones and iPod touches, but the most surprising thing to me has been the number of children carrying around iPod touches. Parents seem to be willing to spend anything for their kids, and I've seen a large number of them tapping away on games. I can't imagine doing something like that, since it would be so easy for someone to mug a little kid for a $300-400 iPod. Oh, well... anything's good for the stock... I guess.
  • Reply 3 of 16
    todtod Posts: 3member
    As these teen customers grow older, most of them will buy even more from Apple. It will take years, but will be worth it. Apple is in such a good position now.



    --

    Tod's blog: http://www.todarrow.com/blog
  • Reply 4 of 16
    monstrositymonstrosity Posts: 2,234member
    Good, then spend all your pocket money on my software.
  • Reply 5 of 16
    Quote:
    Originally Posted by AppleInsider View Post


    The of the 18th bi-annual Piper Jaffray teen survey shows...



    Does PJ do this only every two years? One would think that they'd do a survey such as this at least semi-annually just to keep up with fast-changing trends.
  • Reply 6 of 16
    Quote:
    Originally Posted by tod View Post


    --

    Tod's blog: http://www.todarrow.com/blog



    This forum is not a place to self-promote some vague blog. Thanks.
  • Reply 7 of 16
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by SpamSandwich View Post


    I've seen a lot of people carrying around both iPhones and iPod touches, but the most surprising thing to me has been the number of children carrying around iPod touches. Parents seem to be willing to spend anything for their kids, and I've seen a large number of them tapping away on games. I can't imagine doing something like that, since it would be so easy for someone to mug a little kid for a $300-400 iPod. Oh, well... anything's good for the stock... I guess.



    My son (4 years old) love to play games with my iPhone. We were once at a friends house and one of the kids had PSP. He gave it to my son to try it and he kept tilting and shaking the PSP while playing thinking that it works like the iPhone. The other kid showed him how to play but after less than 5 minutes he gave it back and asked me if he can play with my iPhone instead

    I will buy him an iPod touch for games and movies. I am getting tired of burning and changing DVDs and will just get the dock along with the AV cables.
  • Reply 8 of 16
    todtod Posts: 3member
    Quote:
    Originally Posted by anantksundaram View Post


    This forum is not a place to self-promote some vague blog. Thanks.



    What are you talking about? I just made a comment. Most sites ask for your personal URL when making comments, so I always put it in. If that is not allowed here, then I will remove it.
  • Reply 9 of 16
    quadra 610quadra 610 Posts: 6,757member
    No surprise here.
  • Reply 10 of 16
    tofinotofino Posts: 697member
    Quote:
    Originally Posted by Quadra 610 View Post


    No surprise here.



    actually - i find it surprising that 13% state that they're going to buy a zune in the next 12 month. microsoft must be ecstatic!
  • Reply 11 of 16
    Quote:
    Originally Posted by tod View Post


    What are you talking about? I just made a comment. Most sites ask for your personal URL when making comments, so I always put it in. If that is not allowed here, then I will remove it.



    I see that you were not linking to a site - as some posters seem to regularly do - that was attempting to drive traffic to a person's blog related to a cryptic assertion that was made in response to an AI story. (I just did not click on link since I assumed that's what it was.)



    After your reply, I did, and I owe you an apology.
  • Reply 12 of 16
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by AppleInsider View Post


    A majority of teens own an iPod, many use iTunes, and more than one in five intend to purchase an iPhone in the next six months, a new survey has found.



    "Previously, teens were indicating that the plan pricing and handset pricing were too high for them (and their parents) to buy iPhones. The lower pricing appears to have been a catalyst for share gains."



    "Apple's dominance in the PMP market remains largely unchecked," Munster said, "and it is clear to us that Apple has captured the 'cool factor' among high school students across America."



    Only 40 percent of surveyed teens legally purchase music online. But of those that do, a whopping 93 percent said they use iTunes to purchase songs. That's the same total from one year ago. The next-largest provider is Rhapsody, with 2 percent.



    But 57 percent of teens use peer-to-peer networks to download pirated music. While still high, that's down from 64 percent two years ago.



    "We believe that the teen demographic is a critical component of long-term growth in the digital music and mobile markets," Munster said, "and Apple is taking its leading position in music and mobile markets."





    Grab 'em now, and you'll have them for life and pretty soon they will be singing...



    Steven Paul Jobs, Mmm, Mmm, Mm; Steven Paul Jobs, Mmm, Mmm, Mm...

  • Reply 13 of 16
    teckstudteckstud Posts: 6,476member
    Let's not forget the importance of the recent addition of MMS which has added to teen appeal for iPhone.
  • Reply 14 of 16
    Quote:
    Originally Posted by Ecphorizer View Post


    Does PJ do this only every two years? One would think that they'd do a survey such as this at least semi-annually just to keep up with fast-changing trends.



    Biannual means twice per year. Biennial means every two years.
  • Reply 15 of 16
    Quote:
    Originally Posted by gayforteckstud View Post


    Biannual means twice per year. Biennial means every two years.



    hahahahaha @ your handle
  • Reply 16 of 16
    Quote:
    Originally Posted by gayforteckstud View Post


    Biannual means twice per year. Biennial means every two years.



    Wow! I honestly didn't realize that but you're absolutely right and I'm <shudder> wrong. I guess I'll have to turn in my "Internet Grammar Police" badge.



    Thanks for teaching this old buzzard a lesson.
Sign In or Register to comment.