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

[stockscalper]

Statistics are an odd thing. The survey showed something like 3 out of 4 households own an Apple product. Makes me wonder what products they're buying because Apple has fallen to third place in smartphone sales and have been losing marketshare in computers the past several years.

 

[DNichter]

Statistics are an odd thing. The survey showed something like 3 out of 4 households own an Apple product. Makes me wonder what products they're buying because Apple has fallen to third place in smartphone sales and have been losing marketshare in computers the past several years.

Apple products last a long time. Just because someone doesn't buy every year, doesn't mean a household won't own one. The iPhone still sells more than any other phone so people are obviously still buying them.

 

[Chupa Chupa]

Statistics are an odd thing. The survey showed something like 3 out of 4 households own an Apple product. Makes me wonder what products they're buying because Apple has fallen to third place in smartphone sales and have been losing marketshare in computers the past several years.

Marketshare is a measure of current sales. A household could have an iPhone 6. It would be counted in the survey, not in marketshare. The survey is of broad ownership of an Apple product, not an Apple product bought this quarter or year. The survey demonstrates how ubiquitous the Apple brand is overall, now how sales are at a specific point in time.
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Not surprised by the survey.

This is basically an illustration of the herd mentality that exists in teens and youngsters. We all wanted to have gadgets, clothes, toys etc that the popular kids in class had and wanted a piece of that slice to appear 'cool' next to our friends. Peer pressure plays a big part in the minds of the youth and they're often naive enough to think it's easy to get hold of one of those items without thinking about costs.

The iPhone is a fashion statement and the 'cool' thing to own in the minds of teenagers and not having one would make them feel left out and 'uncool' in front of their peers, sadly. Of course, they'd say they want an iPhone as their next phone or plan to 'purchase' one.

To some extent yes. But there are lots of iPhone competitors and the iPhone comes out as the "cool phone." It's for a reason because the teen (and adult) opinion makers don't settle on a product unless its worthwhile -- even for a flashing moment like some fads. The iPhone is a fashion statement to and extent, but it's like jeans. There are comfortable, good looking jeans -- usually at a premium, and then there are miserable, ill-fitting ones you can buy at Walmart or Sears. Of course it never hurts to have a nice brand attached but on most jeans the label is obscured.

 

[Ntombi]

The article states 78% of teens already own an iPhone. How are they going to grow meaningfully from this? Even the most blinkered Apple fan has to admit that the remaining 22% may go with an alternative or choose none at all.

You’re starting from a couple of faulty assumptions: that that 78% won’t want/need an upgrade at some point, and that the tweens and kids coming up behind them won’t also be getting phones soon.

Those with phones will end up getting upgrades at some point, and since they’re already in the iOS ecosystem, odds are that they’ll seriously look at another iPhone.

 

[WatchFromAfar]

You’re starting from a couple of faulty assumptions: that that 78% won’t want/need an upgrade at some point, and that the tweens and kids coming up behind them won’t also be getting phones soon.

Those with phones will end up getting upgrades at some point, and since they’re already in the iOS ecosystem, odds are that they’ll seriously look at another iPhone.

An upgrade is not growth, it's one owner getting another model. One owner getting two new models would be growth.
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That is ignoring that there are more people (younger children) growing up behind them that don’t have phones yet, or will get big siblings old phone to use as an iPod Touch. I have also witnessed many families change phones based on what their kids use too.

Common case is the kid will show a parent something like Airdrop, or a shared photo gallery. After which, mom and dad decide they like that feature, and replace their mid ranged competitor phone with a mid ranged, (now that they exist) iPhone model. I have quite a few customers that have done this within the scope of my personal photography business.

Yes but taking that line of thinking to it's logical extreme you'd have to factor in death of iPhone users who will never purchase one again as well; even assuming new users is overall growth has it's problems.

 

[Karma*Police]

A segment of the market with the least real world experience and probably most susceptible to fads, likes iPhones. Is this supposed to be a "positive" for the product/brand?

Yes, there's a reason why all the top brands try to woo teens... they're at an impressionable age and if they become brand loyal at that age, there's a chance they'll continue to use the same brand for life. It's about forming habits early and ensuring a future customer base. Steve Jobs understood this and seeded millions of Apple II's in public schools for that reason.

The brand also benefits when more young people use their products because it makes them look "cool". There's a reason why so many commercials show beautiful, young people having fun... it's something young and old people can relate/aspire to.

That said, you're right, teens go through fads. But usually, the difference is that those fads are some flash in the pan fashion brand whereas Apple is a strong aspirational brand which generally has staying power; not to mention the stickiness of their ecosystem.

 

[TRDmanAE86]

I believe this survey. A year and a half ago, in High School, out of a few hundred kids, only 10 (including me) had Androids. 2 kids could not afford a iPhone and the rest either wanted to try something new or, did not want to be sucked into the Apple Ecosystem. One of the kids that switched to a iPhone told me this "Don't get me wrong Androids are great however, I'm tired of not being able to respond to group chats in iMessage"

In College Now, I'd estimate 95 percent of the kids have iPhones. One of the kids last term asked me why I had a Android Phone. I told him I wanted to try something new and I love this format. He told me he tried Android a few years ago and, missed the compatibility.

Thus, I believe iPhones are more popular because first, overall the technologically inclined and technologically struggled people have one. They can facetime and chat with each other on iPhones, iPods and iPads even without cellular.

Also, having the latest iPhone has turned into a fashion statement more than other phones. Teens get jelious they do not have the newest one and, try to buy the (most expensive) one they can either aquire or afford.

 

[wigby]

Most likely that kid from my store is getting an iPhone 10 lol. I personally think it's weird to drop that much money on a kid especially on something like a phone. But hey maybe that's just me. If the parent thinks it's OK then cool lol but I just couldn't do it

Many teens today prefer having good phone over driving so when you look at the cost and safety issues of maintaining a car, the phone suddenly becomes much more attractive to parents footing the bill.
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A segment of the market with the least real world experience and probably most susceptible to fads, likes iPhones. Is this supposed to be a "positive" for the product/brand?

iPhone isn't exactly a pet rock.

 

[nwcs]

@nwcs
And meanwhile from the same journalist, Young People are Happier Than They Used To Be.

I get the point of the article you linked, and read it a while back. I don’t think we are any more doomed than when journalists prognosticated the destruction of youth with the invention of Raido, TV, and the phone. It takes time for society to catch up to new inventions, but Humanity is able to adapt.

Perhaps but the article you posted is from 2 years earlier than this one. So it may be that more data and analysis has come to light. In any case, happiness is a transient emotion but the other article is more about generational change - both with the good and the bad.

 

[rGiskard]

And this is why the technological might of Face ID was harnessed to create animated emojis.

 

[mi7chy]

Read the fine print:

Piper Jaffray & Co. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found at the end of this report or at www.piperjaffray.com/researchdisclosures.

Piper Jaffray is an investment banking company. Their own made up research are used to pump up their investments and of the company they represent. Think of this as more of an Apple paid ad since no company is foolish enough to spend the manpower and resources to conduct a free research with zero return.

 

[Hastings101]

I wonder if parents generally buy the same type of phone as they have for their children, or if what their children want also affects the phone the parents buy for themselves.

It'd be interesting to know since we're living in a time where people who had phones as kids have pre-teens and teenagers now, so it's no longer just the "well I never had one..." crowd.

 

[ChrisCW11]

Ask how many can afford one, without their parents help...

 

[Kabeyun]

I think I liked Apple a lot more before they were cool.

I think Apple was always cool. Any computer company where typography is guided by knowledge of calligraphy is cool. Maybe you liked them more when they were rebels. I get that.

 

[840quadra]

An upgrade is not growth, it's one owner getting another model. One owner getting two new models would be growth.

Yes but taking that line of thinking to it's logical extreme you'd have to factor in death of iPhone users who will never purchase one again as well; even assuming new users is overall growth has it's problems.

In reality, neither of your situations are really realistic.

Say someone buys a new phone, and gives their old model to a family member, sells it on something like Craigslist, swappa or eBay, chances are that phone remains active and remains in the market share. This article is not related to sales, it is related to iPhone market share with relation to teens. So, if a teen gets a new iPhone and their old model goes to another teen, it would indeed be growth.

Also, Populations are growing, not shrinking, and depending where you look, it is at a ratio of more than 2-to-1.

Perhaps but the article you posted is from 2 years earlier than this one. So it may be that more data and analysis has come to light. In any case, happiness is a transient emotion but the other article is more about generational change - both with the good and the bad.

2 years isn’t that long ago, Apple still sells the 6s .

Generational changes are a constant factor, especially when it comes to how technology impacts those generations. I don’t see our current situation as being anymore alarming than the doom-n-gloom viewpoint on how technology impacted children of my generation. In the end, I feel society will police itself like it has with previous innovations, and concerns such as listed in that article tend to be the catalyst to moderation.

 

[lizurd]

@nwcs
And meanwhile from the same journalist, Young People are Happier Than They Used To Be.

I get the point of the article you linked, and read it a while back. I don’t think we are any more doomed than when journalists prognosticated the destruction of youth with the invention of Raido, TV, and the phone. It takes time for society to catch up to new inventions, but Humanity is able to adapt.

It isn't really the point of the original post, but as long as you all are broaching the topic - smartphones are clearly not neutral, but some sort of social experiment. Giving anybody (teen or otherwise) a smartphone is like handing out crack. They are highly addictive and the consequences are not at all clear. Some of the research is not at all encouraging. More food for thought (may be pay walled) -

https://www.wsj.com/articles/how-smartphones-hijack-our-minds-1507307811

I agree with your assessment about humanity adapting to things, however, time will tell how it works out for the first gen. guinea pigs that we all are.

 

[Baymowe335]

Statistics are an odd thing. The survey showed something like 3 out of 4 households own an Apple product. Makes me wonder what products they're buying because Apple has fallen to third place in smartphone sales and have been losing marketshare in computers the past several years.

iPhone is the #1 smartphone in the US.

Remember, more % of phones run Android, but there are a lot of different Android phones.

 

[ForumChick]

The article states 78% of teens already own an iPhone. How are they going to grow meaningfully from this? Even the most blinkered Apple fan has to admit that the remaining 22% may go with an alternative or choose none at all.

I’m a teen, so I know. If you don’t have an iPhone, you’re seen as poor. If you have an Android, you have a confusing, cheap device. It’s so bad that my sisters 6 died. She said she would rather have no phone at all than buy an android. That’s how loyal teens are to the brand. Very.

 

[convergent]

I’m a teen, so I know. If you don’t have an iPhone, you’re seen as poor. If you have an Android, you have a confusing, cheap device. It’s so bad that my sisters 6 died. She said she would rather have no phone at all than buy an android. That’s how loyal teens are to the brand. Very.

Yet my Android phone probably cost more than any of your friends' iPhones. High school is a tough place and no one wants to be seen as not cool. And the crazy thing is the stuff you are using a smartphone for, with the exception of iMessage, are nearly identical on any smartphone - Instagram, Facebook, Snapchat, etc...

 

[ackmondual]

until their parents see the price...

I've heard some parents freaked out when they learned the PC they bought could've been $100 cheaper if their kids opted for a regular PC case instead of one with decorative spinning and flashing lights. I don't fault either side, as saving money is important AND the heart wants what it wants (hopefully within financial means), but one compromise I've heard that works out well is parents provide a base price for necessities and wants. If the child wants something better, he pays the difference. For example... jeans are $30 a pair, but if the child wants some $80 designer, they have to pay the difference.

A segment of the market with the least real world experience and probably most susceptible to fads, likes iPhones. Is this supposed to be a "positive" for the product/brand?

It's the whole "status symbol" thing.
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It's hard to believe these surveys that tell us X% of the population is switching to iPhone. If that were true, why does Android continue to take the biggest share of the mobile market?

Android user and iPhone user aren't mutually exclusive. This survey doesn't imply that only no more 22% of US teens use Android. There are families that use both.

IDK, when you can easily spend $50 for a basket of groceries these days, $1000 doesn't have as much buying power as people think it does. A teen that doesn't pay for food, insurance, rent, or other things can easily save up $1000 with dedication and a part time job. That, and some parents have savings accounts for gifts such as phones and other toys.

Today's cell phone, is Yesterdays RC car / train set / Nintendo / Playstation, etc.

I've known kids who have a Neo Geo console system! It was $650 (IIRC). Even in 1990 money, it's still not quite $1,000 today. However, add a few games, and I'd say close enough.

 

[Ntombi]

Ask how many can afford one, without their parents help...

How is that any different from any other thing minors want/need/use?

 

[makingdots]

I don't have kids, I have bills, and flip phones were essential to teens in my day.

You didn't get my point why your parents obliged to give you a flip phone. They got kids to financially support, family to feed, they are not in the generation where we all know that a phone is really now essential. Flip phone really a essential? rofl, that basic function is just to flirt or get influenced and strayed away too much by your friends.

 

[Dragon_Registry]

Are that many kids parents actually buying them new phones? I get handing your old iPhone down, but I have a hard time imagining that that many parents are willing to spend $1000 on a phone for their kid to check Facebook.

Parents spoil their bratty children and getting on a phone plan with payment subsidies, etc., makes it appear that the phone is cheaper than it really is. I live in Orange County, CA, and all the "middle class" kids in my son's 9th grade class have $500+ smartphones, and yes, most of them have iPhones. As for me, I was so tempted to just get my son a "flip phone" but since I have an iPhone 4S and iPhone 5C, they just use one of those whenever needed.
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My two have hand me down iPhones, 6 & 6S. They're both getting 7's for XMas. A $1K phone? Not gonna happen.

My policy is to NEVER have either of my kids bring a "smartphone" to high school. When it's time to get them a communication device in 10th grade, it will be an Apple Watch w/ cellular.

 

[WatchFromAfar]

I’m a teen, so I know. If you don’t have an iPhone, you’re seen as poor. If you have an Android, you have a confusing, cheap device. It’s so bad that my sisters 6 died. She said she would rather have no phone at all than buy an android. That’s how loyal teens are to the brand. Very.

I don't believe a word of what you say. Flagship Android phones cost more than the SE/6s/7 series of iPhones so being "seen as poor" is just plain ignorance of the facts. The whole `give me iPhone or give me death` stance is ridiculous and says nothing about loyalty to the brand but more about conformity among peers; hardly "think different".

 

[ForumChick]

I don't believe a word of what you say. Flagship Android phones cost more than the SE/6s/7 series of iPhones so being "seen as poor" is just plain ignorance of the facts. The whole `give me iPhone or give me death` stance is ridiculous and says nothing about loyalty to the brand but more about conformity among peers; hardly "think different".

It is ignorance. People think android and think poor. People see iphone and think well off. At my school at least.