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Analyst Munster: Teens absolutely adore Apple products
Wednesday, April 08, 2009 - 05:23 PM EDT

"How much do teens love Apple products? About as much as possible, according to new data from Piper Jaffray analyst Gene Munster," Eric Savitz blogs for Barron's.

Savitz reports, "In a research note, Munster reports that his 17th bi-annual teen survey of the buying patterns and preference of 600 teenagers found that enthusiasm continues to run high for Apple gear:"

• 16% of students surveyed expect to buy an iPhone in the next 6 months.
• 8% already own one, up from 6% a year ago.
• iPod market share in the survey group is 86%, up from 84% 6 months ago.
• Of the 40% of students who legally purchase music online, 97% use iTunes, up from 81% a year ago.

Savitz reports, "The bottom line, Munster says, is that Apple’s dominance in the consumer electronics and online music markets 'is going seemingly unchecked.'"

Full article here.

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Apr 08, 09 - 05:31 pm Comment from: Larry

Nice. In university especially, I notice more people are switching to Macs and more people have iPhones and iPod touches on the bus.

Apr 08, 09 - 05:37 pm Comment from: LTD*

Better than a gun in their hands, that's for sure.

Apr 08, 09 - 05:40 pm Comment from: Predrag

In addition to that, what the original article doesn't mention is that behind iPod, the second most popular device was -- Zune with (wait for it...) 4% market share (!!!). For every 22 iPod owners, there was one Zune loser.

And another tidbit from his research: When the teens who were planning on getting a new media player were asked which player they were planning to get, ALL OF THEM said iPod (that's 100%).

So, while teen market may be almost thoroughly saturated, there is still room for some turn-around. Refreshing those devices in the hands of teens as quickly as possible (and putting them into the hands of the newly-minted teens) is probably the next task for Apple.

Apr 08, 09 - 05:42 pm Comment from: Anonymous©

Wow, I didn't realize that bi-teens had so much buying power!
wink

Apr 08, 09 - 05:44 pm Comment from: Virus Free!

Now imagine what Apple could do in the console gaming market.

But Apple can't afford to piss off SONY them wining the BlueRay vs HDDVD war and all.

Problems problems.

Apr 08, 09 - 05:46 pm Comment from: mike_in_helsinki

@Predrag

Saw the 100% figure. Yes .. every single damn one of them will go with iPod. I could not believe my eyes.

100% of something is a lot.

Apr 08, 09 - 05:48 pm Comment from: JAYGEE

I see Macs everywhere at Uni now. I'd also say around 40% of my friends own Mac's, all Macbook's btw, and a couple of my friends own an iPhone, and most have iPods.

I own a Macbook and a 1st gen iPod nano. I love Apple products, but hate Apple as a company. They are so stubborn.

Apr 08, 09 - 05:58 pm Comment from: Jubei

A question about the Zune was also on the survey. Each answer was the "?" on each and every card, followed by "oh that POS LOL".

Apr 08, 09 - 06:11 pm Comment from: Noodle-Armed Choir Boy

But teens don't care about being "cool", do they?

Apr 08, 09 - 06:17 pm Comment from: Peter

On the other hand, teens also adore Miley Cyrus.

'nuff said.

Apr 08, 09 - 06:24 pm Comment from: Wings2Sky

Obviously they are just buying it for the logo and the chance to look cool...

Apr 08, 09 - 06:27 pm Comment from: Mr. Reeee

JAYGEE... if Apple didn't stick to it's principals, it would be just another mediocre electronics firm.

So, we learn to accept the little bad with a lotta good!

Those survey numbers are pretty amazing.

Zunesters now get a taste of what it used to be like as a Mac user, except for the fact that Macs were ALWAYS the clearly superior OS and computing platform. It must suck doubly for them since the Zunes are such junk, coming from a multi-level-dreadful company.

Apr 08, 09 - 06:28 pm Comment from: Randian

@Peter

"On the other hand, teens also adore Miley Cyrus."

ALL of em? Naw, that's silly. Besides, it's primarily pre-teens that have been infected with the Hannah Montana bug, not so much Miley. And besides, teens also love pizza, which has very little nutritional value compared to a chef's salad. So what? Your comparison holds little water

Apr 08, 09 - 06:29 pm Comment from: Mac-nugget

26 billion dollars and growing. Fad or no Fad, Apple is still firing with all it's cylinders.

Apr 08, 09 - 07:02 pm Comment from: Noodle-Armed Choir Boy

@Mac-nugget
"...Apple is still firing with all it's cylinders. ..."

And just before the competition shows up with nearly as many cylinders (but less than half of them firing), Apple will announce (metaphorically) that they are running faster and more efficiently on some as-yet unimagined solar and wind-based technology.


Okay, right now I'm making more analogies than Kellog makes corn flakes.

Apr 08, 09 - 07:10 pm Comment from: Sir Gill Bates

"100% of something is a lot."

Not as much as 110% like in sports.

Apr 08, 09 - 07:15 pm Comment from: HolyMackerel

@ Virus Free! "Now imagine what Apple could do in the console gaming market"

All Apple need do is add support for OnLive on the AppleTV via an SDK to make an excellent gaming platform. It already has the USB port and WiFi for controllers.

Apr 08, 09 - 07:18 pm Comment from: bizlaw

@ JAYGEE:

You love Apple products but hate Apple as a company? How can that be? Do you think Apple should abandon its plans and instead follow advice from bloggers and analysts? Gee, that makes a lot of sense.

Apr 08, 09 - 07:31 pm Comment from: ken1w

> Of the 40% of students who legally purchase music online, 97% use iTunes, up from 81% a year ago.

So what are the other 60% doing...? I doubt too many are buying physical CDs.

Actually, it's good to see that 40% are buying legal downloads.

Apr 08, 09 - 07:50 pm Comment from: JAYGEE

@ bizlaw

I love how you put words in my mouth then ridicule me for it haha

Apr 08, 09 - 07:54 pm Comment from: BC Kelly

Part of a conversation I over-heard the other day, paraphrased some


**********************************************


i meen its like totally omg

my mom and dad r Soooo 90s

and all they want is a pc and windoze and won't get me a mac

i meen i luv 'em, but they are Soooo clueless


**********************************************



The Generational Rebellion Cycle™ maybe taking an interesting 'tech' turn in 21st Century


wink



And to ... Anonymous©


Yes, but only twice a year


cool smile






BC

Apr 08, 09 - 08:14 pm Comment from: geezer

@BC Kelly,

Every generation has its gap.

Hehe I remember pushing for an Apple II in a typewriter world. cool smile The conversation is always the same, just substitute the technology.

Apple: you'd better be making plans for what the Gen Y's kids are gonna want! "Oh my boring parents are sooo 2009...."

Apr 08, 09 - 08:23 pm Comment from: Yawn ..

Well now that mom & dad are buckling down and in more and more cases not working I don't think buying new MBP, Iphones and yet another iPod is in the budget.

Want is not need and Want doesn't equal - sale.

In other reports a whopping 89% of people like to browse in affluent stores. Is this really news?

Apr 08, 09 - 09:08 pm Comment from: Me In LA

I got news for ya - us old bastards love 'em too!

Apr 08, 09 - 09:22 pm Comment from: Sir Gill Bates

Amen, Grandpa!

Apr 08, 09 - 09:48 pm Comment from: alsoran

My two pre-teens normally use my Mac mini for homework as well as browsing etc. but if whenever they need reprimanding for bad behavior they are required to use Mom's windose PC for a week. I have found this to be more effective than grounding them or taking away other privileges.

Apr 08, 09 - 10:25 pm Comment from: Splat

They buy for the same reason we do....Mac and Apple WORK they way they should....period

Apr 08, 09 - 11:36 pm Comment from: nomoremsbs

@ken1w
40% is pretty good, but $1.29 for a hit song that the kids want is going to motivate more of these kids to get their music fix through other means. Once they discover free, it is going to be difficult to get them back. My guess is next years poll will show a drop from 40%. I would be surprised if the music industry ends up with the increased revenue they desire. Now, what if the music industry dropped their price to 25 cents? it is not hard to imagine that the legal downloaders could conceivably jump to 80%, considering the ease of purchase, & the benefits of the metadata & album artwork displayed on their iPods & iTunes. Also it is easy to imagine that the $ spent per year average per teen would increase. sounds like they could substantially increase their revenue stream. can you say "Double or nothing".

Apr 09, 09 - 02:13 am Comment from: ken1w

@ nomoremsbs

Going to $1.29 for popular songs is not a good move, I agree. It's going to backfire on the music industry, but I think in a different way. Customers are not going to buy those songs for $1.29 at the same volume as they would have at 99 cents. So actual revenue from digital sales will stay about the same (on lower volume) or even go down due to reduced excitement and word-of-mouth hype.

Over time, the music producers will just release more and more the songs at 99 cents, to increase volume and hype upon the initial release. However, there is now a 69 cent price for older catalog songs that would have sold fine at 99 cents previously. After a year of this tiered pricing, I'll bet more songs will be sold at 69 cents than at $1.29. That means the average price of songs sold would have gone DOWN at the iTunes Store. That would benefit Apple, not the record labels.

I think 40% participation (in legal digital downloads) by the teens is a pretty good number. The music producers should have keep the price at a simple and consistent 99 cents; that 40% number would have slowly moved up.

Apr 09, 09 - 05:28 am Comment from: gedboy

I work in a High School in officially the poorest constituency in Britain. Apart from a few kids using their phones to listen to music, every kid who has music has an iPod, a Touch or an iPhone.

There are a lot of shuffles clipped on to shirts. I see this sea change as the kids have clocked that they can charge their iPods via the USB ports in the computers in my ICT room.

The fact that I draw gasps on a regular basis as I do something whizzy with Keynote (which are 'pure healthy' or 'pure heavy mental') or use my iPhone to control my presentation is also part of it.

Extend and errr embrace those young people Mr Jobs.

Apr 09, 09 - 07:03 am Comment from: AA Attendee

and some of us old bastards like Miley Cyrus...., as long as the sound is muted.

Apr 09, 09 - 07:08 am Comment from: harsh..

@ALSORAN

I am reporting you to Social Services for cruel and unusual punishment wink

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