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Jim Liebelt Christian Blog and Commentary

Apple Near Saturation Point For iPod, iTunes Use By Teens

The results of Piper Jaffray's 17th bi-annual teen survey are in, showing Apple to have broadened its lead in the areas of iPod consumption and iTunes usage -- both of which are nearing their saturation point -- as the company moves to translate these successes to its iPhone business.

Overall, 92 percent of students said they currently own a digital media player, up from 87 percent a year ago. Of these students, a resounding 86 percent reported owning an Apple-branded iPod, an increase of 2 percent from the same survey conducted in the fall of last year. Just 4 percent of students admitted to owning a Microsoft Zune.

However, when asked about their interest in buying a new digital media player in the next 12 months, only 19 percent said they planned to do so, representing a "dramatic" decline from 28 percent a year ago, and suggesting the market is near saturated. For Apple, the good news is that 100% of those respondents who said they plan to make a new purchase in the next 12 months indicated that their new player would be an iPod.

As far as iPhones and the teen demographic, Piper Jaffray's 16th bi-annual survey last fall found that 8 percent of teens owned an iPhone with an additional 22 percent saying they planned to buy one of the touch screen handsets over the next 6 months. In the most recent survey, the number of teen iPhone owners remained flat, though purchase intentions declined slightly to 16 percent.

Source: Apple Insider