AppleInsider Staff
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.
Charles Martin
Malcolm Owen
Andrew O'Hara
William Gallagher
35 Comments
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.
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.
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?
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.