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Tuesday, October 09, 2012, 03:25 pm PT (06:25 pm ET)

iPhone adoption among teens hits 40% in U.S., iPad at 31%

Results from Piper Jaffray's semi-annual survey of 7,700 U.S. teens illustrated Apple's hold on the market, with 40 percent of respondents saying they own an iPhone while another 62 percent are looking to buy one as their next phone.

Analyst Gene Munster noted that Apple continues to enjoy healthy growth with the younger demographic, as the 40 percent number is up from 34 percent in Spring 2012, and 23 percent in Fall 2011.

The analyst pointed out that Apple was able to expand its market share among teens without introducing new products between the Spring and Fall 2012 surveys. Continued growth is expected as 62 percent of respondents from the most recent survey plan to purchase an iPhone when they upgrade. In comparison, 22 percent of teens surveyed said they planned to buy an Android device.

"Overall, we expect Apple devices to continue to expand in teen ownership and believe that the
company is set up well to benefit from loyalty among its younger user base," Munster said.

Teen Survey

Source: Piper Jaffray


Going further, Munster noted an increase in tablet use among teens, with 44 percent currently owning such a device compared to 34 percent in Spring 2012 and 29 percent in Fall 2011. Of the teens who owned a tablet, 72 percent had an iteration of the iPad, up two percent from Spring. As for those students who did not own a tablet, but plan to purchase one in the next six months, 74 percent said they plan to buy an iPad.

With tablet adoption increasing in all sectors, Apple's much-rumored iPad mini could be a boon for the teen market as the 7.85-inch tablet is expected to carry a lower price tag than its bigger brother.

"The smaller iPad appears to be an attractive option for teens as 43% of teens planning on buying a tablet said they would be more likely to do so if Apple released a smaller iPad at $299," Munster said.

Last week, a report claimed Apple has started production of the small form factor iPad, with Asian suppliers said to have received orders for over 10 million units to be built in the fourth quarter. It is rumored that Apple will send out invitations on Oct. 10 to a media event at which the iPad mini will be unveiled.