US college students to spend all-time high in 2009. Computer and consumer electronics account for majority EMS and ODM revenues. Companies with large EMS consumer electronics market shares include Hon Hai, Flextronics, Foxconn, High Tech Computer…
The 13.8 million college students ages 18 to 30 that make up the Class of 2013 are the largest class in history on campus this year. This growing and influential group is responsible for a record $250 billion in projected spending power…up nearly 6% over 2008 figures.
According to findings recently released from Alloy Media + Marketing’s 9th annual College Explorer survey, projected discretionary spending shows a comparable gain, with these college students reporting peak figures at $56 billion, amounting to 37% hike in spending in just four years.
For 2009, college students in the United States are expected to lay out an all-time high of $6.5 billion on technology.
EMS providers take note
That $6.5 billion in projected annual technology spending shows a slight rise over 2008 figures and accounts for all of the many forms of technology available to today’s student populace, including computers, mobile devices, MP3 players, and gaming consoles and devices.
Notably, technology purchases fall just below the top two discretionary spending categories: food and automotive.
Outside of the above two categories, it appears technology leads in overall discretionary spending and ranks essential in the life of today’s modern student.
When it comes to “tech” purchasing decisions, it is college students who make the final call. A weighty 70% of college students state that they are the key decision makers when purchasing their cell phones, while 63% make the ultimate choice for their digital camera and 60% do so when deciding on their choice of computing.
The computer and consumer electronics segments account for the majority of all EMS and original design manufacturing (ODM) industry revenues.
Global outsourcing companies that could benefit from serving the large consumer electronics market for the young and tech-savvy include companies like Hon Hai Precisions Industries which commanded approximately a 20% share of the EMS consumer electronics market in 2008 according to research firm IDC.
Other outsourcing electronics providers include Flextronics with a 2008 consumer electronics EMS market share of 17.4%, Foxconn (13.3%), High Tech Computer (6.9%), Elcoteq (5.8%), Quanta (4.3%), Jabil Circuit (3.7%) and Inventec (3.2%), to name a few.
Modern revolution on campus
Findings from the study go on to say advancing technologies and new digital offerings continue to revolutionize the modern campus. Only two years ago, just under one-third of college campuses offered blanket “wireless” coverage.
Today, that figure has doubled, with 60% of college campuses meeting the demands of today’s “totally connected” co-ed. Students’ increasing mobility and need for 24-7 connection is confirmed by rapid year-over-year increases in ownership of both laptops and MP3 players.
For the first time since the College Explorer study’s inception, desktop ownership slides below half of the 18 to 30 year old college student population (46%), while laptops are now the preferred model on campus, with three-quarters (75%) of students reporting ownership.
In four years, the MP3 player has more than doubled to a total of 74% ownership. Digital camera ownership also jumped to almost three-quarters (74%) – a 28% increase since 2006 and a clear reflection of the daily documentation taking place on social networking sites and blogs, that now seems a prerequisite to campus life.
Input from friends and family continues to be a strong influence on students’ decision-making with respect to brands, products and services, with 62% of students placing particular importance on word of mouth from friends. Nearly half (44%) trust the advice of family and 40% are influenced by seeing others using products.
Technology addiction
For the first time, the study delved into how much time multi-tasking students were engaging with their preferred media on a daily basis, for any purpose.
When all platforms were totaled, the study found that students are spending 12 hours daily, on average, engaged with some type of media. The majority of that time, 9.5 hours, is spent with their “tech” gadgets, including computers, mobile devices, MP3 players, and gaming devices.
Students are now spending twice as much time on their computers as compared to television viewing.
Students reported watching 2.5 hours of television daily, nearly equal to time spent on their cell phones or PDA’s, while one-fifth of their day is spent on the computer. One-quarter of today’s college students are using their cell phone or PDA to play MP3’s or games, with 20% using these devices to access the internet for a variety of activities. Such activities represent further evidence of this generation’s converging screen behaviors.
Additional survey findings on purchasing decisions…
- 70% of college students say they are the key decision makers when purchasing their cell phone
- 63% make the ultimate choice for their digital camera
- 60% make the ultimate choice when deciding on a computer
- Input from friends and family continues to be a strong influence on students’ decision-making with respect to brands, products and services
- 62% of students place particular importance on word of mouth from friends
- Nearly half (44%) trust the advice of family and 40% are influenced by seeing others using products
- For students who reported using technology devices to shoot, send or receive video content, nearly 60% of college students report doing so on their computers, with 45% conducting this activity on their cell phone, smartphone, or PDA.
When asked about the survey findings, Andy Sawyer, senior vice president, media services for Alloy Media + Marketing, says, “Mobility and media convergence appears to be the required curriculum on the quad. Perpetual advancements in technology have clearly given students increasing control and the ease with which to socialize, communicate and be entertained on demand.”
The 2009 Alloy College Explorer study was conducted online within the United States by Harris Interactive on behalf of Alloy Media + Marketing from April 1 to 27, 2009 among 1,521 US 18-34 year old college students (2-year, 4-year and graduate students, including 1,433 18 to 30 year old college students) who agreed to participate in online surveys. Results were weighted as needed for age, sex, race / ethnicity, region and school status (full-time, part-time, 4-yr., 2-yr.). Propensity score weighting was also used to adjust for respondents’ propensity to be online.
Source: Alloy Media + Marketing, VentureOutsource.com, December 2009
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