iPod Touch Seen as Building Base of Future iPhone Users
As all industry eyes look to the iPhone, the iPod Touch is quietly building a loyal base among the next generation of iPhone users, positioning Apple to corner the smartphone market not only today, but also tomorrow. In terms of Life Stage Marketing, the practice of appealing to different age-based segments, Apple is using the iPod Touch to build loyalty with pre-teens and teens, even before they have their own phones (think: McDonalds' Happy Meal marketing strategy). When today's young iPod Touch users age by five years, they will already have iTunes accounts, saved personal contacts to their iPod Touch devices, purchased hundreds of apps and songs, and mastered the iPhone OS user interface. This translates into loyalty and switching costs, allowing Apple to seamlessly "graduate" young users from the iPod Touch to the iPhone.
As part of its metrics report, Flurry reveals an iPod touch market that is growing faster than the iPhone market in terms of "user sessions", with the iPod touch increasing its session share by four percentage points over that past five months while the iPhone's share has slipped by seven percentage points.
A major factor in the growth of the iPod touch has come from games, where the iPod touch has overtaken the iPhone (49% to 46%) in the number of user sessions. The usage pattern falls in line with Apple's emphasis on promoting the iPod touch as a gaming device, a market positioning that Apple took some time to come around to.
While the iPod touch's tremendous performance, growing 100% year-over-year, has propped up lagging sales of Apple's traditional iPods, the iPhone has quickly grown to surpass the iPod division in revenue. Consequently, Apple's strategy of fostering the next generation of iPhone users via the iPod touch bodes well for the company's continued growth in the mobile market.
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If Apple doesn't, I'll buy the next iPod Touch.
I wonder if there are any other people out there like me whose sole reason for not already having an iPhone is how bad AT&T's service is.
If Apple leaves AT&T in 2010, I'll buy an iPhone with the next revision.
If Apple doesn't, I'll buy the next iPod Touch.
I wonder if there are any other people out there like me whose sole reason for not already having an iPhone is how bad AT&T's service is.
Why does every single thread about the iPhone have to come back to "iPhone on Verizon?" :rolleyes:
If Apple leaves AT&T in 2010, I'll buy an iPhone with the next revision.
If Apple doesn't, I'll buy the next iPod Touch.
I wonder if there are any other people out there like me whose sole reason for not already having an iPhone is how bad AT&T's service is.
I might be in the minority, but I live in Melbourne Florida and have had an iPhone for 4 months now and think the service is excellent.
Why does every single thread about the iPhone have to come back to "iPhone on Verizon?" :rolleyes:
I suppose it's an indication of just how much pent up demand there is. I expect there are quite a few people who could transition to AT&T without any problems, but are scared away because of all the negative publicity.
I suppose it's an indication of just how much pent up demand there is. I expect there are quite a few people who could transition to AT&T without any problems, but are scared away because of all the negative publicity.
Right, but many of them dont realize that if and IF the iPhone goes to Verizon, they will suffer the same network problems that AT&T does. Thats not an opinion, mind you, thats a fact. And then Ill be subjected to a thousand "Gah, WHEN IS IPHONE GOING TO SPRINT?!?!?!?!!??!" threads.
Wow that is awesome for AAPL.
Despite the trend toward device convergence, the iPod Touch is still selling very well. It's a pleasant surprise.
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