Teen intent to buy iPhone hits record 86 percent, Android wallows at 10 percent

Posted:
in iPhone
Apple's popularity with U.S. teens has not waned, as new data from Piper Jaffray suggests 82 percent of the demographic owns an iPhone, and even more say they plan to buy one in the near future.

iPhone XS Gold


In its biannual "Taking Stock with Teens" survey, the investment bank notes 86 percent of teens surveyed said their next phone would be an iPhone. By contrast, a paltry 10 percent of teens said the intend to buy an Android device, according Business Insider.

The 86 percent figure represents the highest intent to buy Piper Jaffray has seen in its seasonal report.

"Overall, we view the survey data as a sign that Apple's place as the dominant device brand among teens remains intact," Piper Jaffray analysts Michael Olson and Yung Kim said in the report.

Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand.

Alongside iPhone, Apple Watch is also seeing steady demand. Some 17 percent of teens said Apple is their favorite watch brand behind Rolex, no small feat for a tech company. Previous surveys found 12 percent of young Americans owned an Apple Watch, while 17 percent planned to buy the device.

According to the study, overall spending is up 1 percent year-over-year, but down 5 percent from spring. Teens spend the most on food, video games and beauty products.

The results are based on responses from approximately 8,600 U.S. teens from 47 states.
«1

Comments

  • Reply 1 of 29
    BluntBlunt Posts: 219member
    This can't be true because 5 years ago Apple lost it's cool to Samsung. At least that's what the newspapers said.
    gilly33SpamSandwichwatto_cobrajony0
  • Reply 2 of 29
    And does it really materialize in sales to teens?
    bonobob
  • Reply 3 of 29
    NY1822NY1822 Posts: 545member
    I've yet to see a teen in the wild wearing a Rolex...unless Rolex plans to offer Instagram notifications, I doubt I ever will.
    supadav03radarthekatfirelockravnorodomwatto_cobra
  • Reply 4 of 29
    avon b7avon b7 Posts: 2,894member
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 
  • Reply 5 of 29
    radarthekatradarthekat Posts: 2,713moderator
    avon b7 said:
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 
    Yeah, but you gotta admit, if you’re going to flatten out, shifting some 220 million phones each year at the ASPs Apple commands is a pretty good place to do so. 
    edited October 23 king editor the gratetmaygilly33lolliverwatto_cobra
  • Reply 6 of 29
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    mwhitegilly33lolliverwatto_cobra
  • Reply 7 of 29
    Rolex? What kind of kids are they doing survey on? Not my kid for sure.
    watto_cobra
  • Reply 8 of 29
    MacProMacPro Posts: 17,776member
    NY1822 said:
    I've yet to see a teen in the wild wearing a Rolex...unless Rolex plans to offer Instagram notifications, I doubt I ever will.
    List of things they are impressed by is probably all it means.  Teens probably have a list of favorite supercars too, doesn't mean any actually have one.  

    That said, I joked about giving mine (edit ... Rolex not supercar lol) to a grandkid now I have an Watch plus a new Watch v4 on the way but my wife pointed out they wouldn't want it as it doesn't have walkie-talkie mode lol.
    edited October 23 radarthekatgilly33lolliverwatto_cobra
  • Reply 9 of 29
    BluntBlunt Posts: 219member
    avon b7 said:
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 

    Fandroid point of view. I would say that's why the iPhone is doing so great for all those years.
    lolliverwatto_cobrakurai
  • Reply 10 of 29
    Let's be more accurate here: teens *intend* to use their parents' disposable income to get new iPhones. Teens do not have money of their own and for those who have jobs, they're summer jobs or part-time work.

    In any case, you better start bugging mommy and daddy now because come 15 April, they're not going to have so much disposable income once they start paying on that payday loan they heard was a tax cut. 
    gilly33
  • Reply 11 of 29
    Teens do not have money of their own and for those who have jobs, they're summer jobs or part-time work.
    It's been a few decades since I was a teen, but I recall feeling flush with my wages because I didn't pay rent or buy food.
    bonoboblolliverwatto_cobra
  • Reply 12 of 29
    radarthekatradarthekat Posts: 2,713moderator
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    AvonB7 should go read the latest weekly
    article on AboveAvalon.  It speaks exactly to the secondary market for iPhones and how the existence of demand for used iPhones allows Apple to go farther upmarket rather than downmarket as every analyst for years has suggested Apple needed to do.  Apple sells fewer iPhones at higher prices while benefiting (by selling software and services) from the huge used-iPhone market and growing installed base.  Let other sell iPhones at low prices - used iPhones - while Apple controls the premium priced market by offering only the most technologically advanced models. 
    lolliverwatto_cobra
  • Reply 13 of 29
    GeorgeBMacGeorgeBMac Posts: 3,246member
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    Yeh, that was my plan with my poorly performing iPhone 6+.  But then it developed touch disease and Apple replaced it with a new one that runs like a champ -- and there's just no way my frugal nature will let me throw away a phone that runs and works this well.  So: Looks like my grandson will have to wait awhile before he sees an X.   But, surprisingly, he seems to be fine with that idea.   He's happy with his 7.

    Actually, this worked out well.  He was looking forward to an Xr.  But that phone is too big for his 12 year old's pockets.   Hopefully, next year brings a broader size range of that line.   Then I get a "new" iPhone 7 and he gets an XIr
    watto_cobra
  • Reply 14 of 29
    GeorgeBMacGeorgeBMac Posts: 3,246member
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    AvonB7 should go read the latest weekly
    article on AboveAvalon.  It speaks exactly to the secondary market for iPhones and how the existence of demand for used iPhones allows Apple to go farther upmarket rather than downmarket as every analyst for years has suggested Apple needed to do.  Apple sells fewer iPhones at higher prices while benefiting (by selling software and services) from the huge used-iPhone market and growing installed base.  Let other sell iPhones at low prices - used iPhones - while Apple controls the premium priced market by offering only the most technologically advanced models. 
    Aside from Apple Music, what services does Apple sell?
    (I don't count repairs.  Nor do  count the $0.99 I spend for expanded iCloud storage.)

    But, in fact, Apple has opened up its market to lower cost phones.  But NOT by selling junk but by continuing to sell older versions of its phones at discounted prices.

    I think the main way Apple benefits from the used iPhone market is that buyers are more willing to spend on the latest and greatest if they know there will be a resale market for it when they decide to upgrade again.
  • Reply 15 of 29
    GeorgeBMacGeorgeBMac Posts: 3,246member
    Interesting article.
    I know that all of my grandson's friends have iPhones.  But I assumed that was because he lived in a well to do area.   I guess its more pervasive than I thought.
    watto_cobra
  • Reply 16 of 29
    MacProMacPro Posts: 17,776member
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    AvonB7 should go read the latest weekly
    article on AboveAvalon.  It speaks exactly to the secondary market for iPhones and how the existence of demand for used iPhones allows Apple to go farther upmarket rather than downmarket as every analyst for years has suggested Apple needed to do.  Apple sells fewer iPhones at higher prices while benefiting (by selling software and services) from the huge used-iPhone market and growing installed base.  Let other sell iPhones at low prices - used iPhones - while Apple controls the premium priced market by offering only the most technologically advanced models. 
    Aside from Apple Music, what services does Apple sell?
    (I don't count repairs.  Nor do  count the $0.99 I spend for expanded iCloud storage.)

    But, in fact, Apple has opened up its market to lower cost phones.  But NOT by selling junk but by continuing to sell older versions of its phones at discounted prices.

    I think the main way Apple benefits from the used iPhone market is that buyers are more willing to spend on the latest and greatest if they know there will be a resale market for it when they decide to upgrade again.
    Apple Services is a massive sector and is far more than Apple Music these days I believe.  This is a year out of date: https://www.businessinsider.com/apple-services-business-strategy-2017-8
    edited October 23 watto_cobra
  • Reply 17 of 29
    tmaytmay Posts: 3,245member
    avon b7 said:
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 
    Or maybe, it might be that 82% of teens already have them.

    https://www.ped30.com/2018/10/22/taking-stock-with-teens-apple/

    So yeah, flat market, with no room for Android OS growth in that market either.
    watto_cobra
  • Reply 18 of 29
    gatorguygatorguy Posts: 19,392member
    tmay said:
    avon b7 said:
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 
    Or maybe, it might be that 82% of teens already have them.

    https://www.ped30.com/2018/10/22/taking-stock-with-teens-apple/

    So yeah, flat market, with no room for Android OS growth in that market either.
    That's the same Piper-Jaffray report from this AI article being repeated at PED30. Piper-Jaffray has been reporting the same general survey results for several years now.
    As PED mentions the report could have been headlined as "Well-heeled teenagers overwhelmingly have iPhones" since the survey targeted those from families with well-above-average incomes.   Entitlement has its privileges. 
    :)
    edited October 23 muthuk_vanalingamravnorodom
  • Reply 19 of 29
    GeorgeBMacGeorgeBMac Posts: 3,246member
    MacPro said:
    avon b7 said:
    It's weird that with all that intent, actual sales have been flat for three years now. 
    It’s not that weird. I know plenty of parents who take their kid’s “old” iPhone and let the kid upgrade. And since iPhones receive updates and stay functional for so long after the initial purchase that same phone is likely to get handed down again to another parent, younger sibling, grandparent etc. 

    Who expects the entire family to upgrade every year? It may happen but I bet it isn’t the norm. 
    AvonB7 should go read the latest weekly
    article on AboveAvalon.  It speaks exactly to the secondary market for iPhones and how the existence of demand for used iPhones allows Apple to go farther upmarket rather than downmarket as every analyst for years has suggested Apple needed to do.  Apple sells fewer iPhones at higher prices while benefiting (by selling software and services) from the huge used-iPhone market and growing installed base.  Let other sell iPhones at low prices - used iPhones - while Apple controls the premium priced market by offering only the most technologically advanced models. 
    Aside from Apple Music, what services does Apple sell?
    (I don't count repairs.  Nor do  count the $0.99 I spend for expanded iCloud storage.)

    But, in fact, Apple has opened up its market to lower cost phones.  But NOT by selling junk but by continuing to sell older versions of its phones at discounted prices.

    I think the main way Apple benefits from the used iPhone market is that buyers are more willing to spend on the latest and greatest if they know there will be a resale market for it when they decide to upgrade again.
    Apple Services is a massive sector and is far more than Apple Music these days I believe.  This is a year out of date: https://www.businessinsider.com/apple-services-business-strategy-2017-8
    It is!  I agree!   But my question was not "What services does Apple offer?"  It was "what services does Apple sell?"  and was prompted by the claim:
    "Apple sells fewer iPhones at higher prices while benefiting (by selling software and services) from the huge used-iPhone market"
  • Reply 20 of 29
    tmaytmay Posts: 3,245member
    gatorguy said:
    tmay said:
    avon b7 said:
    "Save for a blip in spring 2015, Apple's draw of the teen market -- both in ownership and intent to own -- has steadily risen over the past five years. Last year, for example, 82 percent of teens planned to buy an iPhone, a figure that was at the time a new height for the brand."

    It's weird that with all that intent, actual sales have been flat for three years now. 
    Or maybe, it might be that 82% of teens already have them.

    https://www.ped30.com/2018/10/22/taking-stock-with-teens-apple/

    So yeah, flat market, with no room for Android OS growth in that market either.
    That's the same Piper-Jaffray report from this AI article being repeated at PED30. Piper-Jaffray has been reporting the same general survey results for several years now.
    As PED mentions the report could have been headlined as "Well-heeled teenagers overwhelmingly have iPhones" since the survey targeted those from families with well-above-average incomes.   Entitlement has its privileges. 
    :)
    I saw that.

    iPhone is an aspirational product, especially for teens, and with the price to the iPhone XR, isn't really out of the price range of most anyone at about a dollar a day on a plan, not to mention many free offers of refurbished, older units, on offer from carriers.

    "The Apple Watch was the top smartwatch among teens, garnering 16% share, with the Samsung Gear next on the list at 2%. 23% of teens plan to purchase an Apple Watch in the next six months, up from 20% in the spring. Overall, we view the survey data as a sign that Apple’s place as the dominant device brand among teens remains intact."
    edited October 23 watto_cobra
Sign In or Register to comment.