Cheaper iDevice models driving teen interest

Posted:
in General Discussion edited January 2014


Apple's 'discount' prices of carry-over products are generating a growing interest in younger would-be customers who want iOS devices but can't necessarily pay the premium for new generation items.



According to investment bank Piper Jaffray's teen survey, 40 percent of high school students plan on buying an iPhone in the next six months possibly due to more affordable previous generation models like the iPhone 3GS.



The 23rd semi-annual nationwide study that surveyed 5,600 high school students showed that the number of teen iPhone owners continues to rise, jumping up to 34 percent from 23 percent in Fall 2011 and 17 percent last Spring.



Senior Research Analyst Gene Munster believes that the spike in both iPhone ownership and intent to buy is being driven by more affordable models like the 3GS, which ranges in price from free to $49 on contract.



The percentage of surveyed teens looking to buy a new Apple handset rose to an all-time high of 40 percent versus 38 percent from the end of 2011. Intent-to-buy was distributed evenly between owners and non-owners as both demographics claimed a 40 percent interest in making a purchase within the coming half year.



Tablet ownership and interest is also growing in the teen market, and some 34 percent of students already own a tablet. The number is up from 29 percent from Fall 2011.



Just as with the overall tablet market, Apple's iPad is dominant in the teen sector and enjoys a 70 percent share of the market followed by Android and the Kindle Fire with 19 percent and 11 percent, respectively.



Of those teens who don't yet own an tablet, 19 percent said they planned to buy one in the next six months, with 80 percent of that group looking to buy an iPad. When the third-generation iPad was launched in March, the iPad 2 saw a significant price drop that makes it a more attractive option for cash-strapped students.





Source: Piper Jaffray







Product synergy is an important factor as some 53 percent of iPad owners stayed within the Apple product ecosystem and also own an iPhone.



Munster reiterates an overweight rating for AAPL stock, and expects the company's popularity with young users to create a growing base of loyal customers.



[ View article on AppleInsider ]

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Comments

  • Reply 1 of 35
    The LAST question in the survey is highly telling. The limited use tablets do not have a future if the incoming users are thinking less and less about eReaders. The old farts may buy eReaders but as they die out, so will dedicated eReaders.



    Apple has hit the sweet spot once again and set the price to where it's highly desirable, but still affordable. By the time a teen is looking at the Apple refirbed iPad2, starting at $299, they are in the upper price range of a iPod Touch.
  • Reply 2 of 35
    dick applebaumdick applebaum Posts: 12,527member


    IMO, what would really goose the iPhone numbers for kids -- if the carriers were to offer a family data plan.



    Maybe Apple could leverage this to happen.



    In our home of 2 adults and 3 teens, we each have an iPhone and an iPad... Though nay the 2 adults iPhones have a SIM and are used as phones.



    We just can't justify the monthly data charges for the teens.



  • Reply 3 of 35
    solipsismxsolipsismx Posts: 19,566member
    They specifically ask if they own an iPhone but then go generic when they ask if they own a tablet? I'm guessing those that own an iPad will only be a couple percent different from the tablet owners.
  • Reply 4 of 35
    addaboxaddabox Posts: 12,660member
    If a teen and/or their parent can't afford an extra $50-$100 to get a current iPhone, how are they going to afford $70-$100 a month for a voice and data plan?
  • Reply 5 of 35
    relicrelic Posts: 4,735member
    My 13 year old daughter got her first iPhone for her birthday last month. She really wanted one because all of her friends have one. I had reservations as the iPhone is a very expensive investment for a young teenager. Especially after hearing the horror stories from other parents about their children's spending habits on the iTunes store. So we made my daughter understand that her new iPhone comes with a restriction, she will never get my credit card to purchase apps or music and that she must buy a iTunes card from the grocery store with her allowance if she wants those things.



    A month later and I really want to take the thing away from her. She spends most of her allowance on the iPhone leaving little for movies or eating out with her friends. Which means she begs daddy and myself.



    My son on the other hand has a Nokia Lumia 800. He wanted it so he could talk with his Xbox buddies. He has many games for it yes but I think we spend only about 30 dollars a month for those. Thank goodness he's not into online music the way my daughter is. My husband gave him his old record collection and we bought a USB record player so he could convert all of those records into MP3's. He's really into collecting old records now which is a fun thing for him dad to do.



    The iPhone is a horrible idea for children or young teens, especially now that they sell these damn iTunes cards at the friggen grocery store. Those things aren't as nearly as bad as alcohol and drugs but their pretty damn close. I wish I would have said no to my daughter. One of my friends has a real problem with her 11 year old daughter in that she's stealing money out of her purse for iTunes cards. Well that stopped after they gave their daughter a dumb phone that only makes calls and nothing else.
  • Reply 6 of 35
    rot'napplerot'napple Posts: 1,839member
    Is it really the expense of the phones that are the problem? Free, $49.00, $199, or $299? That's stopping teens? Apple's retail price (no carrier subsidy), while significant is not the deal stopper for me. That's a constant value that diminishes as I pay it off month after month, whereas the carrier phone plan with DATA, while a constant, is constant month after month. My current 6 year old phone from the same carrier on the same minutes plan will increase 100% with a 'smartphone' plan. Now that, I wonder, would be something stopping more people than the expense of the iPhone?

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  • Reply 7 of 35
    relicrelic Posts: 4,735member
    Quote:
    Originally Posted by addabox View Post


    If a teen and/or their parent can't afford an extra $50-$100 to get a current iPhone, how are they going to afford $70-$100 a month for a voice and data plan?



    I don't either, we pay 60 CHF about 65 dollars a month for the kids subscriptions. We only got a data subscription, no calling, no SMS but they both have unlimited data. We're doing the same thing all of the parents are doing at the school. With just data the kids now use Skype, Tango or Gtalk for all of their chatting and talking needs.
  • Reply 8 of 35
    relicrelic Posts: 4,735member
    Quote:
    Originally Posted by Rot'nApple View Post


    Is it really the expense of the phones that are the problem? Free, $49.00, $199, or $299? That's stopping teens? Apple's retail price (no carrier subsidy), while significant is not the deal stopper for me. That's a constant value that diminishes as I pay it off month after month, whereas the carrier phone plan with DATA, while a constant, is constant month after month. My current 6 year old phone from the same carrier on the same minutes plan will increase 100% with a 'smartphone' plan. Now that, I wonder, would be something stopping more people than the expense of the iPhone?

    /

    /

    /



    After Apple released those iTunes cards into the public it became an enemy of every parent. No, the iPhone is the most expensive gadget a teenager could own. That's not even including the price of purchasing or subscription.
  • Reply 9 of 35
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by Relic View Post


    My 13 year old daughter got her first iPhone for her birthday last month. She really wanted one because all of her friends have one. I had reservations as the iPhone is a very expensive investment for a young teenager. Especially after hearing the horror stories from other parents about their children's spending habits on the iTunes store. So we made my daughter understand that her new iPhone comes with a restriction, she will never get my credit card to purchase apps or music and that she must buy a iTunes card from the grocery store with her allowance if she wants those things.



    A month later and I really want to take the thing away from her. She spends most of her allowance on the iPhone leaving little for movies or eating out with her friends. Which means she begs daddy and myself.



    My son on the other hand has a Nokia Lumia 800. He wanted it so he could talk with his Xbox buddies. He has many games for it yes but I think we spend only about 30 dollars a month for those. Thank goodness he's not into online music the way my daughter is. My husband gave him his old record collection and we bought a USB record player so he could convert all of those records into MP3's. He's really into collecting old records now which is a fun thing for him dad to do.



    The iPhone is a horrible idea for children or young teens, especially now that they sell these damn iTunes cards at the friggen grocery store. Those things aren't as nearly as bad as alcohol and drugs but their pretty damn close. I wish I would have said no to my daughter. One of my friends has a real problem with her 11 year old daughter in that she's stealing money out of her purse for iTunes cards. Well that stopped after they gave their daughter a dumb phone that only makes calls and nothing else.



    The device isn't the problem. You can't change a personality because you stick a different gadget in someone's hand. You're not your job. You're not how much money you have in the bank. You're not the car you drive. You're not the contents of your purse. You're not your smartphone.



    There are parental controls and the more advanced ipHone Configuration Utility. You can easily prevent users from buying anything on Apple's digital stores, with or without a gift card.... but you should know all this.



    You wonder why people think you troll here? You didn't state it's a horrible idea for your daughter, instead you stated that it's a horrible idea for 'children and young teens." What you experience with your daughter has no barring on the rest of the world's "children and young teens."



    Then to make matters worse you say it's almost as bad as alcohol and drugs? So you gave your children alcohol and drugs? Smart! It's fine that you feel that way, but it's odd to think that someone who understands who buys so many phones doesn't have a solid grasp of their utility.



    Finally, you go for a triple pile with an implication that Apple is the reason an 11yo girl steals money. Let's blame the Apple and not the parent or the teen. Surely everything would be right with the world if the big bad Apple wasn't around to make people do bad things¡
  • Reply 10 of 35
    addaboxaddabox Posts: 12,660member
    Quote:
    Originally Posted by Relic View Post


    After Apple released those iTunes cards into the public it became an enemy of every parent. No, the iPhone is the most expensive gadget a teenager could own. That's not even including the price of purchasing or subscription.



    You do know that there are parental restrictions available on iOS and within iTunes, right? That you can set an allowance, restrict content, block it altogether, etc. In fact, iOS has probably the most robust parental controls of any mobile OS.



    It seems weird to blame the operating system for having an abundance of desirable content, especially when it's easy to set limits. Then again, it's you, so......
  • Reply 11 of 35
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by Relic View Post


    No, the iPhone is the most expensive gadget a teenager could own.



    Just one example:
    You might want to fact check a little bit before using a superlative.
  • Reply 12 of 35
    Quote:
    Originally Posted by Relic View Post


    My 13 year old daughter got her first iPhone for her birthday last month. She really wanted one because all of her friends have one. I had reservations as the iPhone is a very expensive investment for a young teenager. Especially after hearing the horror stories from other parents about their children's spending habits on the iTunes store. So we made my daughter understand that her new iPhone comes with a restriction, she will never get my credit card to purchase apps or music and that she must buy a iTunes card from the grocery store with her allowance if she wants those things.



    A month later and I really want to take the thing away from her. She spends most of her allowance on the iPhone leaving little for movies or eating out with her friends. Which means she begs daddy and myself.



    My son on the other hand has a Nokia Lumia 800. He wanted it so he could talk with his Xbox buddies. He has many games for it yes but I think we spend only about 30 dollars a month for those. Thank goodness he's not into online music the way my daughter is. My husband gave him his old record collection and we bought a USB record player so he could convert all of those records into MP3's. He's really into collecting old records now which is a fun thing for him dad to do.



    The iPhone is a horrible idea for children or young teens, especially now that they sell these damn iTunes cards at the friggen grocery store. Those things aren't as nearly as bad as alcohol and drugs but their pretty damn close. I wish I would have said no to my daughter. One of my friends has a real problem with her 11 year old daughter in that she's stealing money out of her purse for iTunes cards. Well that stopped after they gave their daughter a dumb phone that only makes calls and nothing else.





    Same problem here with a twelve year old and an iTouch. We had to terminate app store purchases completely. It's quite addictive.
  • Reply 13 of 35
    ezduzitezduzit Posts: 158member
    @minnesota

    <Same problem here with a twelve year old and an iTouch. We had to terminate app store purchases completely. It's quite addictive.>



    so is eating. better check your 12 year old's weight.
  • Reply 14 of 35
    adamcadamc Posts: 582member
    Quote:
    Originally Posted by Relic View Post


    My 13 year old daughter got her first iPhone for her birthday last month. She really wanted one because all of her friends have one. I had reservations as the iPhone is a very expensive investment for a young teenager. Especially after hearing the horror stories from other parents about their children's spending habits on the iTunes store. So we made my daughter understand that her new iPhone comes with a restriction, she will never get my credit card to purchase apps or music and that she must buy a iTunes card from the grocery store with her allowance if she wants those things.



    A month later and I really want to take the thing away from her. She spends most of her allowance on the iPhone leaving little for movies or eating out with her friends. Which means she begs daddy and myself.



    My son on the other hand has a Nokia Lumia 800. He wanted it so he could talk with his Xbox buddies. He has many games for it yes but I think we spend only about 30 dollars a month for those. Thank goodness he's not into online music the way my daughter is. My husband gave him his old record collection and we bought a USB record player so he could convert all of those records into MP3's. He's really into collecting old records now which is a fun thing for him dad to do.



    The iPhone is a horrible idea for children or young teens, especially now that they sell these damn iTunes cards at the friggen grocery store. Those things aren't as nearly as bad as alcohol and drugs but their pretty damn close. I wish I would have said no to my daughter. One of my friends has a real problem with her 11 year old daughter in that she's stealing money out of her purse for iTunes cards. Well that stopped after they gave their daughter a dumb phone that only makes calls and nothing else.



    The fault is with the parent and not the iPhone.



    You failed as a parent that's why she did what she did.



    So don't blame the iPhone when it's the parent's fault who can't control her own children.



    One more thing who cares.
  • Reply 15 of 35
    freerangefreerange Posts: 1,590member
    I would think that a lot of the teen iPhone and future iPad markets are hand-me-down FTP mom and dad not new sales.
  • Reply 16 of 35
    shaun, ukshaun, uk Posts: 1,050member
    Quote:
    Originally Posted by AppleInsider View Post


    Product synergy is an important factor as some 53 percent of iPad owners stayed within the Apple product ecosystem and also own an iPhone.



    I suspect this is why many people have an iPhone and iPad. There are better smartphones out there than the iPhone but it's easier to stick with one platform across the board, especially with iCloud.
  • Reply 17 of 35
    tallest skiltallest skil Posts: 43,399member
    No forced data plans like EVERYWHERE ELSE ON THE PLANET would also drive teen interest.



    Make it happen, Apple.
  • Reply 18 of 35
    I wish they would have asked a multiple choice question like;



    Which size tablet would you consider ideal? a) 10" b) 7" c) 6" d) 5"
  • Reply 19 of 35
    tallest skiltallest skil Posts: 43,399member
    Quote:
    Originally Posted by Smallwheels View Post


    Which size tablet would you consider ideal? a) 10" b) 7" c) 6" d) 5"



    People don't know what they want until you show it to them.
  • Reply 20 of 35
    fuwafuwafuwafuwa Posts: 163member
    Well, no wonder, because most iDevices are durable, and have long time support. If one bought Android, and lucky enough to pass one year, there is still "unsupported by new OS even bought 6 months ago" problem..
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