Samsung Still Trails Apple In This Crucial Demographic
A new report by Piper Jaffray analyst Gene Munster shows that, despite increased competition from Android devices such as Samsung (SSNLF), Apple (NASDAQ:AAPL) is still the most popular smartphone and tablet maker among teenagers.
In a survey of 5,200 teens, 48 percent reportedly own an iPhone, compared to 40 percent just six months ago and 34 percent the year prior. “Additionally, the survey demonstrated that 62 percent of teens expect their next phone to be an iPhone, which we believe shows that the iPhone has loyalty amongst teens,” said Munster. “In terms of Android, 23 percent of teens expect their next phone to be an Android device, up from 22 percent in Fall 2013.”
The survey also revealed a significant increase in the number of tablet computers owned by teens. 51 percent reported owning a tablet, compared to 44 percent six months ago and 34 percent the year previous.
Apple is also the kingpin in this market share with 68 percent ownership, combining both the iPad and iPad mini owners. In second place is Android, which saw its market share increase from 20 percent to 23 percent in just six months.
Says Munster: “For those teens that expect to purchase a tablet in the next 6 months, 68 percent said they plan on buying an iPad, thus it appears that Apple should be able to maintain its tablet share. The iPad Mini is beginning to show its impact as the 68 percent of those who plan to purchase break down into 54 percent for full sized iPads and 14 percent for iPad Minis”…
From these results, it is plain to see that Apple isn’t likely to venture from the top of the tablet and smartphone market, so long as the younger generation stays loyal. It also appears that part of Samsung’s “The Next Big Thing” marketing campaign— featuring commercials of scoffing young customers staring amusedly at middle-aged men and women waiting in line for the release of the new iPhone— is a little off target. In fact, Munster believes that the Samsung Galaxy S3 and S4 have yet to make any noticeable dent in the iPhone’s market share, instead taking share from other Android devices.
If Samsung is going to knock Apple from its perch, a serious impression on the younger generations is a must. Consumers are comfortable, and loyal, with the products they are raised using. That is a distinct advantage for Apple, and one that Samsung must furiously try to overcome.
Here’s how Apple rounded out the Wednesday trading day: