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Cheaper Apple Devices Attract More Teen Customers

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In a semi-annual teen survey conducted by the investment bank Piper Jaffray, it was revealed that Apple’s discount prices for its carry-over products attract the interest of potential teen customers. Apparently, it’s because the younger demographic of the company’s target market are budget-conscious students.

Interpreting the Numbers

Based on the survey, 40% of high school students plan to buy an iPhone in the next six months. That is possibly due to the affordable price of previous-generation models like the iPhone 3GS. The data also indicated an increase in iPhone ownership among teens from 17% last spring to 34%.

The firm’s Senior Research Analyst Gene Munster pointed out that the spike in ownership and intent to buy an iPhone is largely due to more affordable models like the 3GS, which price ranges from free to $49 on contract. In fact, the nationwide survey conducted to 5,600 high school students showed an all-time high increase of intent to buy an Apple device from 38% by the end of last year to 40%. This applies to both owners and non-owners of iOS products.

Other than iPhone, tablet ownership also saw an increase from 29% last fall to 34%. The teens are actually dominant, as 70% of Apple’s market share for iPad is composed of this demographic.

As for those who don’t own a tablet yet, 19% of the surveyed students say that they’re planning to land their hands on one within the next six months. The iPad 2 is a potential candidate for these youngsters, as it saw a significant price drop after the new iPad was released last month.

Apple Products for Christmas

Last November 2011, Piper Jaffray also made a survey unveiling that Apple products are now among teens’ most wanted gifts for Christmas. Among the teens who were surveyed, 3.4% of them want an iPhone, 2.5 votes for iPad and 1.1% of them are looking for Macs. This is in comparison of 0.3% of young people questioned who want an Xbox 360 and 0.4% who yearns for a PlayStation 3.

 

Piper Jaffray’s survey only shows that Apple’s products are not just becoming popular with the professional sector. Because of their consistent release of new devices, its predecessors are either being phased out or getting a price cut. The latter obviously is a big factor for the company to attract younger customers. In turn, the Cupertino-based company is expecting to create a growing base of loyal teen customers.

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