Piper Jaffray


'Piper Jaffray' Articles

iPhone Ownership Among American Teens Remains Steady While Intent to Purchase Grows

American teenagers are still choosing Apple's iPhone over the competition, with 82 percent of surveyed U.S. teens saying that they own an iPhone, according to Piper Jaffray's latest survey (via Business Insider). This number has grown steadily from 76 percent in April 2017 to 78 percent in October 2017, and it now appears to have plateaued temporarily in 2018, as 82 percent of teens said they owned an iPhone back in April. Looking to the future, 86 percent of teens surveyed said that they plan on buying an iPhone as their next smartphone. This is an increase from 84 percent in the spring. In comparison, 10 percent of the teens said they planned on buying an Android smartphone next, down from 11 percent in the spring. The researchers at Piper Jaffray say that American teens' intent to buy an iPhone is now at the highest they have ever seen. Other tidbits from the report include: 45 percent of teens saying that the brand of an item is the most important factor in a purchase decision, Amazon is the top preferred website, and Instagram is now the most used social platform as Facebook faces an ongoing decline. Netflix represented 38 percent of daily video consumption, ahead of YouTube (33 percent), cable TV (16 percent), and Hulu (5 percent). For this survey, Piper Jaffray surveyed around 8,600 teenagers across 47 states with an average age of 16 and an average household income of $68,300. 44 percent of the teens were female, while 56 were

82% of Teens Surveyed Now Own an iPhone, 84% Plan to Purchase

The iPhone continues to be the most popular smartphone by far among teens, according to new data gathered by investment firm Piper Jaffray for its most recent semiannual teen survey in the United States. 82 percent of teens surveyed own an iPhone, up from 78 percent in the fall of 2017, while 84 percent of teens expect their next phone to be an iPhone, up from 82 percent in fall 2017. Teen ownership and interest in iPhone has grown steadily over the past several years, as demonstrated in the chart below. The Apple Watch is also becoming more popular among teens and saw its highest teen survey share yet in the spring of 2018. 12 percent of upper income teens said Apple Watch was their preferred watch brand, up from just seven percent in the fall of 2017. Among all watch brands, Apple Watch was the second most popular after Rolex. 20 percent of teens said they plan to buy an Apple Watch in the next six months, up from 17 percent in the year-ago survey. Strong growth in Apple Watch interest in the current quarter suggests Apple's Series 3 and Series 1 models are popular among teens. Interest in both Apple Watch and iPhone could see improvement in the coming fall 2018 survey, as major changes are rumored for both devices. The Apple Watch Series 4 could bring the first design changes for the wrist-worn device, while rumors suggest Apple will be introducing three iPhones in 2018, including a 5.8-inch iPhone X followup, a larger 6.5-inch OLED device that can be thought of as an "iPhone X Plus" and a 6.1-inch LCD device that's expected to carry a lower price

78% of Teens Surveyed Own an iPhone, 82% Plan to Purchase

The iPhone's popularity among teens continues to grow, according to new data gathered by investment firm Piper Jaffray for the fall edition of its semiannual U.S. teen survey. 78 percent of teens surveyed own an iPhone, up two percent from the spring 2017 survey conducted earlier this year. 82 percent of teens said their next smartphone will be an iPhone, the highest amount of interest ever noted in one of these surveys. This jump in interest can perhaps be attributed to the 2017 iPhone lineup, which includes the iPhone X with an edge-to-edge display and a TrueDepth camera for facial recognition purposes. Teen interest in the Apple Watch is also up, and 17 percent of teens surveyed said they plan to buy an Apple Watch in the next six months, up from 13 percent in spring 2017. Piper Jaffray says the survey is a "positive point" on iPhone 8 demand and iPhone X demand, and increasing interested in the Apple Watch. Apple Music also made an appearance in the survey, gaining share alongside Spotify and YouTube as teens move away from streaming services like Pandora.On-demand music services like Spotify, YouTube, and Apple Music (30%, 20%, and 17%) continue to gain market share among teens, as more traditional platforms and Pandora continue to lose share.Piper Jaffray's fall 2017 teen survey covered 6,100 teens across 44 states in the United States with an average age of 15.9

76% of U.S. Teens Surveyed Using iPhones, 81% Plan to Purchase

The iPhone continues to be the most popular smartphone among teens, according to data gathered by investment firm Piper Jaffray in its most recent semiannual U.S. teen survey. 76 percent of teens surveyed own an iPhone, up from 69 percent in the spring of 2016, and the highest ownership level seen in the teen survey. A record 81 percent of teens surveyed said they expect their next phone to be an iPhone, up from 75 percent a year ago. Piper Jaffray attributes the jump in interest to the upcoming 2017 iPhone, which is expected to include an OLED display with an edge-to-edge design, a glass body, a faster A11 processor, no Home button, and wireless charging capabilities.Apple continued to grow smartphone share among teens with 76% of teens owning an iPhone vs 74% in Fall-16. We view the survey as a positive data point on iPhone 7 demand and excitement around the upcoming launch of the 10th anniversary iPhone (iPhone X)Teen interest in smart watches has also continued to grow, with interest in the Apple Watch up slightly. 13 percent of teens surveyed said they plan to buy an Apple Watch in the next six months, compared to 11 percent in the spring of 2016. Among fitness bands, the Apple Watch is the second most popular choice after Fitbit. 71 percent of teens said they prefer the Fitbit, while 10 percent chose the Apple Watch. Nine percent preferred Nike-branded fitness bands, while four percent preferred Garmin. While iPhone adoption among teens could see significant growth in the fall with the release of a new line of iPhones with exciting new features,

iPhone 7 Plus Stock Expected to Remain Tight Through Holiday Shopping Season

Apple is unlikely to reach iPhone 7 supply and demand equilibrium by the end of the December quarter, suggesting stock will remain tight through the holiday shopping season, according to Piper Jaffray analyst Gene Munster. Munster checked 134 Apple retail stores in the United States for in-store iPhone 7 and iPhone 7 Plus availability and found 47% of models he checked were available for pickup compared to 40% a month ago. By comparison, he said last year the iPhone 6s lineup was at 100% availability at this time. iPhone 7 models remain more widely available than iPhone 7 Plus models by a significant margin. In a research note obtained by MacRumors, Munster said iPhone 7 Plus inventory remains constrained, with only 3% of SKUs available in the Apple retail stores he checked compared to 14% a month ago. Piper Jaffray said iPhone 7 and iPhone 7 Plus inventory in China continues to be more constrained than on Apple's home turf. It found 16% total availability of SKUs at 96 China Unicom stores versus the 47% figure in the United

Teen Interest in iPhone Remains High, Apple Watch is Most Popular Smart Watch

Teen interest in Apple's iPhone continues to grow, according to data gathered by Piper Jaffray analyst Gene Munster in the latest semiannual teen survey. 69 percent of teens surveyed own iPhones, up from 67 percent in the Fall 2015 survey. 75 percent of teens queried expect their next device to be an iPhone, up one percent from the previous survey. Smart watches are not as popular among teens as smartphones, and only 12 percent of those surveyed owned a smart watch. With teen smart watch owners, the Apple Watch was the model most often chosen -- of the 12 percent of teens who own a smart watch, 71 percent are Apple Watches. Just 10 percent of teens say they're interested in purchasing a smart watch, a number that's grown just two percent since fall of 2015. We would expect the Apple Watch to maintain market share close to that of iPhone, but don't expect major changes in interest until stronger use cases emerge. We continue to view CY17 as the potential breakout year for Apple Watch.When considering the full range of wearables, the Fitbit was the most preferred brand among teens, with 72 percent surveyed choosing the Fitbit. Nike came in second at 12 percent, and interest in the Apple Watch was at six percent. Wearables are growing in popularity, with 22 percent of females and 18 percent of males surveyed owning a fitness tracker, up from 14 and 12 percent, respectively, in the previous survey. Tablet interest and ownership among teens in Munster's annual survey has been steadily declining. 59 percent of teens own a tablet, down from 61 percent, and just 13

Virtual Reality Coming to iOS Within 2 Years, Claims Gene Munster

Piper Jaffray analyst Gene Munster believes Apple plans to put iOS at the center of several forthcoming augmented reality and VR innovations set to launch within the next two years. In a research note obtained by AppleInsider, Munster claims a timeline of recent purchases and hires by the company suggests that iOS support for "mixed reality" applications could be set for launch as soon as 2018. The analyst points to a LinkedIn search which reveals at least 141 Apple employees with a background in AR, although it should be noted that the same search returns 425 and 267 people with similar experience working at Microsoft and Google, respectively. Of particular interest to Apple is the concept of "mixed reality" wearables, or advanced optics that use embedded cameras and sensors to blend holographic imagery with real-life objects, claims Munster. Intellectual property gained via research and development projects as well as strategic acquisitions, such as Apple's purchase of 3D body sensing firm PrimeSense, are said to be behind the recent drive. We believe 10 years from now Generation Z will find reality inefficient. We believe the concept of an 'inefficient reality' is evident through smartphone use today — the precursor to mixed reality — offering users the ability to find more information as needed.The analyst goes on to suggest a natural progression in the personal technology market from smartphones to AR/VR and believes Apple is looking at VR as an iPhone peripheral, much like the Apple Watch. The prospect of Apple releasing hardware on this front in the

Gene Munster Faces the Prospect of No Apple Television Set

Piper Jaffray analyst Gene Munster today confirmed that the asset management firm no longer expects an Apple-branded television set to launch in the future. The news comes courtesy of Munster's Company Note updates and follows yesterday's confirmation, out of The Wall Street Journal, that Apple ditched plans for such a television set over a year ago. Munster was well-known to tout beliefs that the Cupertino company would be launching an Apple television set in the near future, rumors that were reignited largely in part due to a direct quote from Steve Jobs in Walter Isaacson's biography of the Apple CEO. The analyst began predicting a 2012-2013 launch year for the product in 2011, with the circulation of other news and rumors that year, and in the intervening years, helping to propel the alleged Apple-branded TV set forward. The latest prediction came just last December, with Munster estimating the TV set would cost around $1500 with a launch sometime in 2016. Today, the Piper Jaffray analyst notes that while the news confirms Apple was at one point working on a television set, the firm was in fact wrong in its "constant expectation of the product." Munster notes that the firm was also wrong about the reason for delay, and now cancellation, of the project, having less to do with basic content and more with the lack of specific untapped features in the crowded TV set market. "We have been talking about an Apple television for the better part of the last decade. While it is a small consolation that the article affirms that Apple was actually working on a

Teen Interest in Apple Watch Drops Ahead of Launch, iPhone Remains Popular

Apple Watch demand among U.S. teens remains relatively low even as the device's launch approaches, according to Piper Jaffray analyst Gene Munster's latest semiannual teen survey, which asked approximately 6,200 teens in the United States about their device usage habits and future buying plans. Only 11 percent of teenagers surveyed plan on purchasing an Apple Watch, down from 16 percent in the fall survey. Of those 11 percent, the top reason teens cited for wanting an Apple Watch was style, followed by design. Only five percent of teens currently own a smart watch. We believe the lower purchase intent reflects a wait and see approach to the Watch as it seems unclear what will be the "killer app" for the Watch. We expect teens to be a good market for the Apple Watch given the popularity of the iPhone, but believe it will take time for influencers (celebrities) to make the watch popular among teens.Though teens don't yet seem to be interested in the Apple Watch, the iPhone and the iPad remain the most popular smartphone and tablet among teenagers. 66 percent of teenagers surveyed owned an iPhone, down slightly from 67 percent in the fall survey, while 64 percent owned an iPad, compared to 66 percent in fall of 2014. 72 percent of teens expect their next smartphone purchase will be an iPhone, while 60 percent expect their next tablet to be an iPad. Comparatively, interest in smartphones and tablets from other companies remains low. 21 percent of teens expect their next smartphone purchase to be an Android, and 16 percent plan to buy an Android tablet. Interest in

Apple Reportedly Has Small Team Working on Augmented Reality Projects

Piper Jaffray analyst Gene Munster claims in a note to investors that Apple has a small team working in and exploring the augmented reality field. Munster believes that while augmented reality is still a decade away from broader consumer adoption, Apple is preparing for the next evolution in computing and will be able to offer fashionable wearables that people will actually want to wear."While it is limited, we believe Apple has a small team of engineers exploring augmented reality applications. We believe that at the core, the group is likely trying to understand a wearable interface that design would ultimately make fashionable/socially acceptable. At this point, we believe it is difficult to determine if or when these experiments might yield a product."Google Glass is perhaps the most notable example of a wearable that, while revolutionary in many aspects, created some uncomfortable situations for those wearing the device in public. Glass Explorer Edition was quick to be banned from several public establishments, including movie theaters, casinos, restaurants, hospitals, sports venues, schools, banks and more due to its ability to discreetly take photos and record videos. Munster remains skeptical about whether Apple's focus on augmented reality will result in a future product, as it is common for the company to research and develop new products and technologies that are never released to the public. Munster also has a less than impressive track record at divulging Apple's upcoming plans, so his predictions should be treated with a proverbial grain of salt. Apple

Gene Munster Still Believes in the Apple Television Set, Thinks 2016 Launch Likely

After numerous failed attempts at predicting Apple's first foray into television sets, Piper Jaffray analyst Gene Munster has not yet given up hope that the company will deliver. During an interview at Business Insider's 2014 Ignition Conference earlier this month, Munster made yet another prediction on the rumored Apple technology, citing a two-year wait for Apple's own television set. Munster regarded this year's prediction as an "annual penance" for being consistently incorrect in guessing the release date for Apple's rumored television set. Instead of the usual one-year prediction Munster has been throwing out the past few years, the analyst looked into the past to further support his two-year suggestion for Apple's next big product. "Apple takes a long time in-between products. If we look back over the last decade, it's 3-6 years between major products. And so, ultimately the Watch is what hit this year, they're gonna refine that next year along with payments. And then that probably gets us into 2016 as more of a time frame for the actual television." Though it may seem a bit behind the game for Apple to launch a television set when connected TVs are already becoming ubiquitous and prices continue to decline, Munster looks at the lack of innovation and the true potential of Apple entering the market as significant positives for the company. "So far the connected TV market really hasn't done much, they sell a lot of units but people don't really use the connected TV part unless they're accessing Netflix. So the concept of what the opportunity can really hold

U.S. Customers Unsurprisingly Delaying New iPhone Purchases as iPhone 6 Launch Nears

A study from Piper Jaffray analyst Gene Munster unsurprisingly shows that interest in the iPhone is waning as the current lineup ages and users are increasingly looking toward an expected fall launch for the iPhone 6. The survey asked 1,016 U.S. consumers about their plans to buy a new smartphone in the next three months. According to Munster, only 34 percent of surveyed consumers plan to buy an iPhone in the coming months, down from the 50 percent reported shortly after the iPhone 5s and iPhone 5c launch in September of last year. While interest in the iPhone wanes, consumer attention towards Android has increased as the balance shifts toward the newest handsets. Leading Android vendor Samsung introduced its latest flagship Galaxy S5 handset in February ahead of a launch last month. This declining interest in the iPhone is not surprising, given the cyclic nature of product launches. With the iPhone midway in its product cycle, consumers may be delaying their purchase of a new iPhone due to rumors that suggest Apple's iPhone 6 is likely to arrive this fall. The effect of rumors on a consumer's purchasing decision is nothing new -- Apple CFO Peter Oppenheimer blamed rumors for declining iPhone sales in the months preceding the launch of the iPhone 4S. The iPhone 6 also appears set to bring a larger than normal upgrade spike as the device moves to a significantly larger display. Even with U.S. customers delaying their purchases, Piper Jaffray still sees reason for optimism with continued strong international sales and even U.S. planned purchase rates remaining as

Analyst Predicts No Siri on iPhone 5C, Fingerprint Scanner Solely for Device Unlocking on iPhone 5S

Piper Jaffray analyst Gene Munster late yesterday released a new research note to investors centered around Apple’s upcoming product launches for the rest of the year, including key predictions on the anticipated low-cost iPhone, potentially named the iPhone 5C. In his note, Munster predicts that the iPhone 5C will not come with Siri, the intelligent personal assistant within iOS, and that the device will replace the iPhone 4S at the bottom of the iPhone lineup. Munster also believes that the lower-cost iPhone will sell for an estimated $300 off-contract.In terms of the phone itself, we expect the cheaper phone to have a plastic casing, 4" display, and lower end internal specs (processor, camera, memory, etc.) than the 5S/5 line up. Additionally, we believe that Apple may exclude some software features, such as Siri, which we note was not an option on the iPhone 3GS or iPhone 4 upon launch. Munster apparently believes that omitting Siri from the iPhone 5C would help differentiate the lineup enough to limit cannibalization of Apple's more expensive iPhones by the cheaper 5C model. It would, however, seem to be an odd move given Apple's efforts to promote Siri and other voice functionality, as well as the fact that the cheaper iPhone 4S currently on the market already supports Siri. The analyst also makes remarks on the iPhone 5S, stating that the phone will indeed incorporate a fingerprint sensor into the home button, but that the feature would be limited to user authentication.We expect the iPhone 5S to include a fingerprint sensor with a basic unlocking feature,

Apple to Target Emerging Markets with Low-Cost Phone to Launch in September at $199?

Piper Jaffray analyst Gene Munster late yesterday issued a new research note using average low-end smartphone pricing in emerging markets to argue that Apple's rumored lower-cost iPhone will launch in September with a price tag of around $199 unlocked. Munster examined smartphone pricing on 15 different models across six international markets (Germany, UK, France, China, Brazil and India) to find that lower-end smartphones average slightly over $200 unsubsidized. In China and India, the average prices are $138 and $140 respectively, while Apple's cheapest existing phone, the iPhone 4, averages over $500.We believe the last finding demonstrates that the biggest pricing gap for iPhone exists between the cheapest iPhone and the average low-end smartphone. This low- end segment is important given we estimate it is a $135B market in 2013 that Apple is currently not participating in (60% of smartphones, or 540m units at a $250 ASP).Munster predicts Apple will announce its low-cost handset in September, and estimates that a $199 price tag would generate sales of 37 million phones in the rest of 2013, 96 million in 2014 and 170 million in 2015. While an iPhone at that price would carry much lower profit margins for Apple, Munster believes that the opportunity is so significant given the size of the potential market that Apple will be willing to focus on gross profit through volume rather than margins. While rumors of a lower-cost iPhone have been picking up steam in recent months, a price point as low as $199 would seem to be overly aggressive for the company given its

Apple Reportedly Investigating Television Set Components as Anticipation Builds

Piper Jaffray analyst Gene Munster, whose long-standing claims of an Apple television set have been gaining steam in recent months as new rumors have surfaced in support of the idea, issued a research note late yesterday (via AppleInsider) discussing some new developments with Apple's work. Specifically, Munster notes that he had recent discussion with a "major TV component supplier" which disclosed that Apple had contacted the company to inquire about their products. The disclosure adds another data point to rumors from Asian supply chains that Apple has been working on a television set. The relevant portion of Munster's report is quoted by Barron's:In Jan-12 we spoke with a major TV component supplier who has been contacted by Apple regarding various capabilities of their television display components. We see this as continued evidence that Apple is exploring production of a television. This latest data point follows Jan-11 meetings in Asia that led us to believe Apple was investing in manufacturing facilities for LCD displays ranging from 3.5″ mobile displays to 50″ television displays. In Sept-11 we met with a contact close to an Asian supplier who indicated that prototypes of an Apple Television are in the works. We believe TV hardware could be ready for a late CY12 launch, but the timeline and scope of a revamped content solution is more uncertain.Observers have been looking for Apple's next major product line even as the iPad and iPhone experience booming sales and the Mac continues its resurgence with long-standing steady growth easily outpacing that of the

Speculation on Apple's Television Set: Range of Sizes, Device Integration, Premium Pricing

Piper Jaffray analyst Gene Munster has long been one of the strongest advocates for an Apple-branded television set, and with increasing claims of just such a product pointing to a launch as soon as the second half of next year, it seems that his persistent confidence in the idea may be panning out. Keeping in mind that Munster does not have specific knowledge of Apple's ultimate plans for its television sets, he does have ideas about what he thinks Apple will do with the product. Business Insider reports that he shared some of those ideas at a conference this morning, going as far as to recommend that anyone thinking of buying a TV wait until Apple shows its hand. Among Munster's predictions: - Full-fledged television set. Given that Apple seeks to streamline the user experience and its recognition that users don't really want yet another set-top box, Apple will almost certainly be going for an all-in-one solution. But given that Apple does not currently offer a full suite of television content offerings, most users will likely not be able to cut ties to their cable or satellite providers. Apple's TV will instead serve as an advanced interface that still draws upon the standard signal coming in from a cable box. - Range of sizes and twice current pricing. Munster believes that Apple will introduce its television in a range of sizes, recognizing that customers have different needs. He also believes that Apple will price its television at approximately twice the prevailing market price of similarly-sized televisions. The price premium would cover the

Analysts Dispute Supply Chain Conclusions of iPad Production Cuts

Earlier today, a report from JPMorgan analysts made headlines for its claim that Apple has slashed its fourth quarter iPad production plans by 25%, sparking speculation and rumors that Apple may be planning a price cut amid weakening demand. The Wall Street Journal notes, however, that several analysts have already spoken out against the conclusion, arguing that a single supply chain data point is insufficient to warrant such drastic production cut predictions. From Piper Jaffray analyst Gene Munster:We also note that previous calls based on sell-in or supply chain data have, for the most part, proven to have very little correlation with Apple’s results vs. consensus dating back to early iPod shipments (2003). We believe Apple purposely maintains enough suppliers and manufacturing partners to make any one supply-side data point inconclusive.Analysts also note that Apple appears to have actually accelerated production and bumped up third quarter orders to stockpile iPads heading into the holiday shopping season. Sources also indicate that Apple is likely to begin production of the iPad 3 at the end of the fourth quarter or early in 2012 and may be accelerating production now in order to ease that transition. Apple struggled with the transition from iPad to iPad 2 production earlier this year, with weak sales coming in the first quarter of this year as Apple scaled down production of the original iPad and was unable to meet heavy initial demand for the iPad 2. From Susquehanna analyst Chris Caso:We believe chatter regarding iPad production cuts are misleading –

iOS App Store Booming: Per-Device Downloads and Average Sales Price Increasing

Fortune reports on a new note from Piper Jaffray analyst Gene Munster, who for some time has been keeping tabs on the performance of Apple's App Store using calculations of download rates and other metrics against number of devices sold. According to Munster, iOS device owners are increasing their usage of the App Store in 2011, downloading more apps as the average sales price for paid apps has rebounded after dropping last year.- More apps: The average iOS device owner will download 83 apps in 2011 vs. 51 in 2010, a 61% increase year over year. "Smartphone users are showing an increasing appetite to use apps to add features to their phones," Munster writes, "and iOS has the leading app ecosystem." - More expensive apps: The ASP (average selling price) per app is rebounding. ASPs are up 14% y/y in 20111 vs. an 18% decline in 2010. "After the initial race to the bottom in App Store pricing," says Munster, "we are seeing users pay up to add features and games to their iOS devices."Munster reports that 82% of App Store activity is from free apps, while the 18% of downloads that are paid apps carry an average selling price of $1.44. Munster notes that the recent increase in average selling price seems to be driven by the iPad, which in general sees higher average app prices than the iPhone and iPod touch. Apple last week announced that the App Store had reached 15 billion downloads since its inception three years ago. Still, App Store revenue represents only about 1% of Apple's overall revenue and is viewed primarily as a driver of Apple's hardware

iOS Developers Embracing Alternative Mobile Platforms, Shying Away From Mac

Fortune reports on a new survey conducted by Piper Jaffray analyst Gene Munster at Apple's Worldwide Developers Conference last week in which he surveyed a number of developer attendees to gain an understanding of their development interests. Interestingly, nearly half of the 45 developers surveyed reported that they are also developing for Android, while only a third revealed that they are developing BlackBerry applications. Only 7% of surveyed developers reported that they are also developing for OS X, indicating that Apple's new Mac App Store and integrated Xcode development tools still have a significant market on the OS X side that remains untapped. A full 93% of iPhone developers unsurprisingly reported also developing for iPad, tapping into the rapidly-growing tablet market as a natural extension of their iPhone and iPod touch businesses. While the developers unsurprisingly (given their attendance at WWDC) unanimously chose iOS as the platform that is easiest for development and best for monetization, only approximately half of the developers regarded iOS as having the highest growth potential. Even among these dedicated iOS developers, 40% of respondents cited Android as having the highest potential for future growth. Munster attempts to compare his results to a similar survey of 20 developers conducted at WWDC 2008, but with only a handful of results from that earlier survey providing little detail and the wholesale changes in iOS and the smartphone industry since that time, it is difficult to make comparisons. For example, iOS developer interest in