Apple 2.0

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Morgan Stanley's 530 summer interns [heart] Apple

August 23, 2013: 6:22 AM ET

In North America, 77% carry iPhones and 57% own Macs.

InternsFORTUNE -- There were several surprises in Katy Huberty's summary Friday of a survey of 530 Morgan Stanley summer analysts and associates in North America (NA), Asia Pacific (APAC) and Europe, the Middle East and Africa (EMEA).

  • First, who knew that Morgan Stanley hired so many summer interns?
  • And who knew that they were so devoted to Apple's (AAPL) products?

Huberty doesn't make a big fuss about it, but what surprised me most in her findings was that the Mac, which has an 11.5% market share in the U.S. and something in the single digits worldwide, looms so large in this cohort. Among these mostly college-age interns, Mac ownership ranged from 24% in APAC to 57% in the U.S.

In Asia, a stunning 61% plan to buy a Mac. (See top chart.)

Huberty was more focused on what the interns had to say about the iPhone and the possible impact a lower-cost iPhone 5C.

Her five takeaways from the survey: (I quote)

1. iPhone is losing share to Samsung in NA, but gaining share in EMEA and APAC.

2. iPhone repurchase rate is much higher than the average of other brands across all regions. Repurchase rate of 59% among APAC interns is consistent with 60% in our China survey, though a bit lower than 71% in NA and EMEA.

3. A lower cost version would augment iPhone purchases among the interns by 21% in NA, 32% in EMEA, and 65% in APAC. The average cannibalization rate of 34% is consistent with 32% estimated cannibalization in our China survey.

4. Software and ecosystem are among the top drivers of switching from the currently owned smartphone brand. Notably, screen size is not viewed as a key differentiator, particularly in Asia, where screen size ranks lower than in the other two regions – perhaps due to the importance of battery life.

5. Apple and Asus are losing share to Samsung in tablets, while Macs are gaining significant traction across all regions, with share gains most pronounced in APAC.

Important caveat, tucked in a box in Huberty's report: "The survey sample is not representative of the age-related population."

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Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for

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