Number of high school students planning to buy an iPhone doubles
Interests in Apple's iPhone amongst high school teenagers is on the rise, according to a new study from investment research firm Piper Jaffray, which found that nearly twice as many students are planning to buy one of the touchscreen handsets in the next 6 months compared to last year.
iPhone
The findings were part of Piper Jaffray's 19th bi-annual teen survey, which polled 6,000 high school students -- including 261 who responded to the Apple-related survey -- over the past few weeks about their interest and buying patterns in portable digital audio and online music products.
During the firm's 2009 spring survey, 8% of students surveyed owned iPhones and an additional 16% expected to buy an iPhone in the following 6 months. But in its most recent study, the iPhone's share amongst teens rose to 14%, while planned purchases nearly doubled to 31%.
"Historically, the interest in buying an iPhone has correlated to future market share gains among teens," said analyst Gene Munster. "Both interest and actual market share has grown steadily since Apple introduced the iPhone, and we expect this to continue. Also, the popularity of the App Store and the quality of games available for the iPhone have likely led to the rising interest among the teen demographic in recent months."
Portable Media Players
Meanwhile, Apple's market share in the portable media player (PMP) category was 92%, up from 87% in the study six months ago. Overall, 86% of students own a PMP (down from 90% six months ago). Interest in buying a PMP in the next 12 months, including first time buyers and replacements, pulled back slightly to 31% (down from 40% six months ago but in line with historical averages). Of those planning on buying a PMP in the next 12 months, 91% expect to buy an iPod.
"Apple is dominant in the market, and the lead appears to be growing as the market nears saturation," said Munster. "In light of this, we see Apple turning its focus to secondary iPods like the shuffle, and iPods with more features like the iPod touch."
The analyst added that the recent announcement that Apple will include a Game Center social gaming network as part of iPhone Software 4.0 highlights the company's focus on the gaming sector, which he sees as "an important one for teens and their mobile devices" that will give the iPhone maker the early lead.
Online Music
Piper Jaffray's survey also found that percentage of students downloading music remains high at 82%, which is essentially unchanged from six months ago. However, most (57%) are using free (P2P) music sharing networks instead of paying for music legally, but illegal downloads have lost some popularity in recent years (down from 64% 3 years ago).
In the online music store category, iTunes' share remains high, approaching saturation, at 92%. With the addition of new features to iTunes software the firm said it believes Apple is well-positioned to hold its lead and even extend it. Also, the App Store has likely been a driver for teens to use the iTunes Store for free apps, then look to purchase music in the music section of the store.
"The bottom line [is that] Apple's dominance in the consumer electronics and online music markets is going seemingly unchecked, capped by market saturation for iPod and iTunes usage," Munster wrote. He maintained his Overweight rating and $287 price target on shares of Apple.
iPhone
The findings were part of Piper Jaffray's 19th bi-annual teen survey, which polled 6,000 high school students -- including 261 who responded to the Apple-related survey -- over the past few weeks about their interest and buying patterns in portable digital audio and online music products.
During the firm's 2009 spring survey, 8% of students surveyed owned iPhones and an additional 16% expected to buy an iPhone in the following 6 months. But in its most recent study, the iPhone's share amongst teens rose to 14%, while planned purchases nearly doubled to 31%.
"Historically, the interest in buying an iPhone has correlated to future market share gains among teens," said analyst Gene Munster. "Both interest and actual market share has grown steadily since Apple introduced the iPhone, and we expect this to continue. Also, the popularity of the App Store and the quality of games available for the iPhone have likely led to the rising interest among the teen demographic in recent months."
Portable Media Players
Meanwhile, Apple's market share in the portable media player (PMP) category was 92%, up from 87% in the study six months ago. Overall, 86% of students own a PMP (down from 90% six months ago). Interest in buying a PMP in the next 12 months, including first time buyers and replacements, pulled back slightly to 31% (down from 40% six months ago but in line with historical averages). Of those planning on buying a PMP in the next 12 months, 91% expect to buy an iPod.
"Apple is dominant in the market, and the lead appears to be growing as the market nears saturation," said Munster. "In light of this, we see Apple turning its focus to secondary iPods like the shuffle, and iPods with more features like the iPod touch."
The analyst added that the recent announcement that Apple will include a Game Center social gaming network as part of iPhone Software 4.0 highlights the company's focus on the gaming sector, which he sees as "an important one for teens and their mobile devices" that will give the iPhone maker the early lead.
Online Music
Piper Jaffray's survey also found that percentage of students downloading music remains high at 82%, which is essentially unchanged from six months ago. However, most (57%) are using free (P2P) music sharing networks instead of paying for music legally, but illegal downloads have lost some popularity in recent years (down from 64% 3 years ago).
In the online music store category, iTunes' share remains high, approaching saturation, at 92%. With the addition of new features to iTunes software the firm said it believes Apple is well-positioned to hold its lead and even extend it. Also, the App Store has likely been a driver for teens to use the iTunes Store for free apps, then look to purchase music in the music section of the store.
"The bottom line [is that] Apple's dominance in the consumer electronics and online music markets is going seemingly unchecked, capped by market saturation for iPod and iTunes usage," Munster wrote. He maintained his Overweight rating and $287 price target on shares of Apple.
Comments
During the firm's 2009 spring survey, 8% of students surveyed owned iPhones... But in its most recent study, the iPhone's share amongst teens rose to 14%,
It looks to me like the percentage owning iPhones has gone down, from 15% last fall to 14% this spring.
Why has the iPhone-owning percentage declined since the start of the school year?
Something has to come along to unseat the iPhone. I mean it happened to the RAZR and other phones before it. Surely the iPhone love is just a fad.
Apple fads have a way of turning into established products.
The RAZR and the iPhone can't be compared.
What are you "planning to buy"
Also, this was probably done before the ipad came out and all the kiddies got to play with one. If you did it again, how many of them would be happy to stick with their 'dumb' phone and get an ipad rather than just getting an iphone.
Also when you are talking about students the numbers are worthless in many cases because they are under 18 and pretty much no state in allowed a minor to enter a contract and every state consider cell phone service to be a contract item. So what they want doesn't always translate into what mommy and daddy will get them.
Forum back up. Nobody cares?
I was wondering what was happening. I thought they pulled an Engadget and disabled them to whip people back into shape.
I was wondering what was happening. I thought they pulled an Engadget and disabled them to whip people back into shape.
No.. issue upgrading to PHP5 that no one caught until it was too late. Apologies.
Kasper
Something has to come along to unseat the iPhone. I mean it happened to the RAZR and other phones before it. Surely the iPhone love is just a fad.
Yeah. Apple is (unalterably) doomed.™
No.. issue upgrading to PHP5 that no one caught until it was too late. Apologies.
Kasper
Yeah I noticed a "Forbidden" message for a bit. Checked back an hour later and all's well.
No harm done.
It looks to me like the percentage owning iPhones has gone down, from 15% last fall to 14% this spring.
Why has the iPhone-owning percentage declined since the start of the school year?
Sampling deviation. (or "Marge Innovera" on Car Talk.)
The important figure is the 'gonna buy' figure. That's amazing.
how many of them would be happy to stick with their 'dumb' phone and get an ipad rather than just getting an iphone.
Funny you mention that.
Now that I've been using my iPad for a week, I'm pretty sure that if I weren't tied into 2 year AT&T shackles (and my wife wasn't completely in love with her iPhone), I would seriously consider a dumb phone and a 3G iPad (with the $30/mo unlimited.)
The phone itself is about my least used feature (I hate phones.)
I don't find the iPad at all cumbersome, and now find using most internet features on the iPhone kinda toy-like. But i guess there are some applications that really shine on the iPhone itself, such as my GPS golf application.
In my dream world, AT&T would simply charge $5/mo more to piggy-back my iPad onto my iPhone account. It would be found money for them because I don't use both devices simultaneously. Hell, they could even put in a mutual lock-out for all I care to make sure I don't use both at the same time.
Apple fads have a way of turning into established products.
The RAZR and the iPhone can't be compared.
Why can't they? They both "revolutionized" the cell phone industry in their own ways. In the days where cellphones were thick and brick-like, the RAZR showed that a cell phone can be ultra thin.
When most-to-all smartphones were Windows CE/Mobile or Palm OS based and clunky to navigate, the iPhone showed that a smartphone can look stylish and the OS be intuitive and quick to navigate.
Both grabbed the media headlines and sold millions the world over during their time in the spotlight. 110 million in 4 years for the RAZR and 50 million so far for the iPhone. Granted, the iPhone is more expensive, and that has to be taken into consideration.
a sample of 261 teens is not likely to be statistically sound so I wouldn't put much weight on Piper's findings.
Also, this was probably done before the ipad came out and all the kiddies got to play with one. If you did it again, how many of them would be happy to stick with their 'dumb' phone and get an ipad rather than just getting an iphone.
Also when you are talking about students the numbers are worthless in many cases because they are under 18 and pretty much no state in allowed a minor to enter a contract and every state consider cell phone service to be a contract item. So what they want doesn't always translate into what mommy and daddy will get them.
Interesting point towards the end.
I'm starting to wonder if Apple shouldn't just buy T-Mobile for a 50/50 cash/stock deal. They'd have their own spectrum and infrastructure to do whatever they wanted. Then everyone could call each other with their video-phone, etc. and Apple wouldn't need to find concessions to do what they want with the hardware and software.
Except that T-Mobile has no 3G. So, it would be an infrastructure that requires a lot of updating and expansion.
a sample of 261 teens is not likely to be statistically sound so I wouldn't put much weight on Piper's findings.
I wouldn't put ANY weight on the findings. The 261 itself is okay as a sampling size (although it's slightly smaller than it should be), but it's culled from voluntary responses from a sampling pool (assumed randomly chosen) of 1600. That skews and invalidates the results completely. All you know (if you care to believe teenagers' assumptions) is that of those students who were motivated enough to respond, a certain percentage of them claim to buy (or have their parents buy for them) an iPhone. If it eventually turns out accurate, it would be by chance alone.
How many would answer the same if they had to use their own money?