Apple's music, tablet dominance: What the teens say

Apple's music, tablet dominance: What the teens say

Summary: Apple's dominance in online music has gone unchecked as iTunes nears the saturation point among teens with a 95 percent market share. The rub: The majority of teens won't pay for music, according to a Piper Jaffray survey.

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Apple's dominance in online music has gone unchecked as iTunes nears the saturation point among teens with a 95 percent market share. The rub: The majority of teens won't pay for music, according to a Piper Jaffray survey.

The Piper Jaffray survey, which queried 4,500 students, found that Apple's product cycle has a lot of growth left. Typically, teen attitudes about Apple are a good indicator of future market share.

Here's what Piper Jaffray analyst Gene Munster found:

  • 37 percent of teens planned on buying an iPhone in the next six months, an all-time high in Piper Jaffray's bi-annual survey. 17 percent of teens owned an iPhone, up from 14 percent six months ago.
  • Apple's market share in portable media players was 86 percent, up from 78 percent six months ago. However, 80 percent of students had a portable media player, a low since 2007. Translation: The iPhone has trumped the standalone iPod. For what it's worth, Microsoft's Zune and Sony had tied for No. 2 in market share with 3 percent each.
  • 22 percent of students owned a tablet or had one in their house and another 20 percent expect to buy a tablet in the next six months.
  • 65 percent are using peer-to-peer music sharing networks to get their music and the overall percentage of students downloading music sat at 77 percent.

Here's a look at the key stats:

Topics: Laptops, Apple, Hardware, Mobility, Tablets

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32 comments
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  • RE: Apple's music, tablet dominance: What the teens say

    Based upon these stats how did you come to the conclusion teens wont pay for music? iTunes which is integral to Apple devices is the worlds biggest music store.
    craigvn@...
    • yeah, i don't get that either... lol..

      @craigvn@... <br><br>1) 65% use peer to peer.. that means 35% don't at all..<br>2) i'm not a teen, but i use peer to peer, but i also buy music as well.. mostly impulse buys... just because you use peer to peer doesn't mean you don't buy music.. didn't the "analyst" straight up ask if they buy music from iTunes in addition to using p2p? that's the question that needs to be answered if you want to know if teens will buy music and i don't see that answer here..
      3) when i was a poor student i was WAY less willing to pay for music than i am now..
      doctorSpoc
      • RE: Apple's music, tablet dominance: What the teens say

        @doctorSpoc
        Doc compare the amount of non paid for music to what you buy. If you have 51% music you didn't pay for then your a peer to peer user as your main music source is non paid for. Itunes has crap muci and most people well most who care know the issues and limitations itunes has and choose not to use it.Simple reality itunes is not used by most music downloaders more by folks a bit older who fear being caught or getting in trouble.
        Fletchguy
      • RE: Apple's music, tablet dominance: What the teens say

        @doctorSpoc You make a very good point. I'd go a little bit further as well... Some of my legally downloaded music comes from bt.etree.org which is a site to share live recordings of share-friendly artists (artists who want their live music to be shared, such as the Grateful Dead), and that definitely qualifies as P2P. <br><br>So yeah, I use P2P legally, as well as using Amazon MP3. That's another bucket that they need to look at.

        I also think we need a bucket for people who own albums on CD, tape or vinyl who refuse to rebuy the album.
        snoop0x7b
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy "Itunes has crap muci and most people well most who care know the issues and limitations itunes has and choose not to use it."

        iTunes has the largest library and no DRM, and is the #1 seller of music. Amazon is right up there beside it. iTunes is handy as you can buy right therein the same window where you sync it to a device. That's why most people use it--not just old people afraid to steal.
        lelandhendrix@...
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy So what you are saying is that those who prefer to steal their music don't like iTunes and those that prefer to pay their way through life versus taking from others like iTunes?
        non-biased
    • RE: Apple's music, tablet dominance: What the teens say

      @craigvn@...
      Lol most people do not use itunes. It is not needed and as stated most people who have digital music do not pay for it. Itunes is more for the crowd that is less tech involved and has expendaple money to burn and thats why they would buy an apple products as they are overpriced and lack the cool factor other brands have. i am curious where they took the survey though as most teens I come in contact with along with teen relatives don't like apple due to it not being "cool" but considered more for older people who just like checking emails or ereaders.
      Fletchguy
      • Trolling, are we?

        @Fletchguy
        frabjous
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy
        "... most teens I come in contact with along with teen relatives don't like apple due to it not being 'cool'...."

        I am not sure you get the most accurate and honest responses from people with black hoods over their heads chained to the ceiling of your basement whom you abducted off the street is a plain white panel van.

        Just saying.
        DeusXMachina
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy That must be what things look like through your goggles, but the truth is far, very far, from what you describe.
        lelandhendrix@...
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy <i>"... lack the cool factor other brands have."</i><br>Did you get approval from the Apple Haters Union board of directors before making this post? You know that one of their key talking points is that people only buy Apple products for the cool factor right? Now anybody with half a brain knows that talking point isn't true but you sure seem to be trying to shatter it and will probably have your membership card revoked if you are not careful.
        non-biased
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy "Itunes is more for the crowd that is less tech involved and has expendaple money to burn"

        Or those who are honest and willing to pay for the work of others instead of stealing it.
        Andre Richards
  • Really?

    "Typically, teen attitudes about Apple are a good indicator of future market share."

    Yes, because teens are so reliable and consistent, like when I was 16 and I told everyone that I was going to learn to play the electric guitar and start a band, that totally happened which is why today I am a world famous rock star, exactly like I said I would be when I was 16.
    Doctor Demento
    • RE: Apple's music, tablet dominance: What the teens say

      @Doctor Demento
      Your very very out of touch. Youth drive the low range mid market electronics buying now adays. If you make a cell phone that the teen market takes too you are in business. Parents buy for the kids, kids buy with their money then parents learn what the kids use and get their own.Thats basic business marketing. you don't market new electronics to retirees.
      Fletchguy
      • Did you do the market research for the Kin?

        @Fletchguy

        Just wondering.
        PMC-CON
  • Doo Wap sha bop

    In FY2010 Apple reported $4.1 billion in iTunes revenue. That's a lot of old farts downloading a lot of Elvis songs.
    Robert Hahn
    • RE: Apple's music, tablet dominance: What the teens say

      @Robert Hahn
      In the entire scheme of world music $4.1 billion is a drop in the bucket. look at projected non paid downloads then multiple that by the usual cost of an itunes song and you will see itunes makes chump change compared to pirated music usage.
      Fletchguy
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy The "projected non-paid downloads" cost is vastly overstated...
        snoop0x7b
      • RE: Apple's music, tablet dominance: What the teens say

        @snoop0x7b
        ... and in this case, not even relevant.
        DeusXMachina
      • RE: Apple's music, tablet dominance: What the teens say

        @Fletchguy And if those non paid (stolen) downloads didn't happen the paid content would cost all of us less money.
        non-biased