"Apple's dominance in the portable media and online music markets is going largely unchecked," says Piper Jaffray senior analyst Gene Munster. "Also,
"Among high school students, it is clear that Apple is successfully carrying itbrand from the media player market into the mobile phone space," the analyst said.
The percentage of students downloading music is still rising, but 64 percent of those surveyed are using free P2P music sharing networks, rather than paying for music legally. That number is down eight percent from 72 percent last fall, and iTunes share remains very high in the online music store category at 89 percent.
Some 82 percent of students polled say they own an iPod. Some four percent said they own a Sony player, while Dell, iRiver, and SanDisk players each accounted for two percent of players owned. About three percent of students said they own a Creative player.
When asked whether they planned to purchase an MP3 player within the next year, 73 percent said they would purchase some form of iPod. Just 11 percent of students surveyed said they would purchase a Sony player. The majority of students said they would pay between $200 to $300 for an MP3 player, more than the 22 percent who would pay less
than $100. 323 percent would pay between $100-$300, and just 10 percent were willing to pay higher than $300 for a portable player.
"Overall, Apple's dominance in the portable music player market remains largely unchecked, and Apple has captured the 'cool factor' among high school students," the analyst says. "We believe that Apple is poised to carry over its portable music player dominance into the mobile space with the
"We expected to see high awareness of the
"Our survey indicated that 25 percent of high school students said they would buy an iPhone for $500," Munster says. "Even if 20 percent of those students (five percent) actually enter the market at $500, our estimate may prove to be conservative," Munster says.
Teens said they acquire 83 percent of their music via online download, but the percentage of music downloaded legally from online music stores -- 36 percent -- is at its highest point since the research firm began studying those numbers in the spring of 2005.
"While Apple is dominating the online music space the category as a whole remains under penetrated, as 37 percent of music purchased by teens is still purchased in a physical format," the analyst noted.