The holidays have been very good to Apple's (Nasdaq: AAPL) iPod touch, according to figures from analytics tool developer Flurry.
The number of apps downloaded on the WiFi-connected media players surged past those downloaded on iPhones in recent days, according to Flurry.
That suggests many iPods were found in stockings and under trees last Friday, and the trend may help Apple build a loyal base among future iPhone users, Flurry contends.
The iPod touch can use many of the same App Store software applications that the iPhone can use. The touch, however, doesn't require the user to pay a monthly service fee. The touch is particularly strong among preteens and teens who use social networking heavily and play games online.
"Communicating with their friends is kids' primary interest in life, and the iPod touch allows kids to extend their natural behavior," Peter Farago, vice president of marketing at Flurry, told MacNewsWorld.
"They find a new piece of technology to let them do what they do more frequently and faster, through social networking and games," he added.
The iPod Touch's Magic
Flurry evaluated downloads by users of the leading Apple and Android devices, pulling a sample that represents about 10 percent of all download volume in the iTunes App Store and the Android Market.
It found that app downloads on iPod touches, which usually hover below downloads to iPhones, shot up around Dec. 25, outpacing iPhone downloads about 172 percent. The survey found that downloads to latest-generation iPod touches on Friday, Dec. 25, was 900 percent more than the average number of downloads on Fridays in December.
On Christmas Day, the total number of app downloads through all generations of the iPod touch soared by 1,000 percent. Flurry believes this growth is due to a combination of new iPod touch 3G devices hitting the market and older-generation iPod touch owners using iTunes gift cards they received for Christmas.
Flurry compiled its data from a sample of more than 3,000 applications, 45 million consumers, and four platforms -- Apple, RIM's BlackBerry platform, JavaME and Android. Each day, Flurry tracks close to 25 million end-user sessions worldwide through its embedded technology.
"Our monitoring software is in many apps and games," Farago explained. "We're like Google (Nasdaq: GOOG) Analytics for mobile apps."
Taking Over
Flurry estimates there are 58 million iPhone and iPod touches worldwide. About 40 percent of this figure consists of iPod touches.
While the iPhone has significant short-term revenue value for Apple, Flurry thinks the iPod touch has more long-term strategic value because it's helping Apple build a loyal base among the next generation of iPhone users. This will position Cupertino strongly for the future.
Apple is using the iPod touch to build loyalty with pre-teens and teens even before they have their own phones, Flurry contended. "In five years' time, today's young iPod touch users will already have iTunes accounts, will have saved personal contacts to their iPod touch devices, purchased hundreds of apps and songs and mastered the iPhone OS interface," Flurry's report states. This will let Cupertino seamlessly graduate young users from the iPod touch to the iPhone.
"I think the iPod touch has been a bit of a pleasant surprise for Apple," Farago said.

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