Piper Jaffray: Apple owns GenZ

Among 8,000 U.S. high school students surveyed, 83% have an iPhone, 9% an Android.

From a report to clients by analyst Michael Olson that landed on my desktop Monday morning:

Apple's share of smartphone ownership was up slightly in the Piper Jaffray Taking Stock With Teens survey. Of ~8,000 respondents, 83% have an iPhone, the highest percentage we have seen in our survey. The iPhone may have room to move higher, however, with 86% of teens anticipating their next phone to be an iPhone, tied for the highest ever in our survey (flat from Fall-18). Android was the runner up with 9%, down from 10% in the fall. The Apple Watch was the top smartwatch among teens, garnering 20% share, with the Samsung Gear next on the list at 2%. 22% of teens plan to purchase an Apple Watch in the next six months, down slightly from 23% in the fall. Overall, we view the survey data as a sign that Apple's place as the dominant device brand among teens remains well intact.

Maintains Overweight rating and $201 price target.

My take: Like earlier efforts, Piper Jaffray's 37th semi-annual Taking Stock With Teens survey seems skewed toward teens with money to spend ($2,600 per year, on average). This one broke new ground by asking what it calls GenZ about their social and political views:

GenZ Actually Cares..This Could Be A Powerful Generation: For the first time ever, we asked teens (in an unaided question) what social or political cause they cared most about. We were surprised that 90% of teens cited a political or social cause they were passionate about—immigration & climate change are top-of-mind but racism, gun control & gender equality all ranked highly.

One Comment

  1. Robert Paul Leitao said:
    While the popularity of the iPhone with post-millennials in the US is really not an issue of debate, the question is which services will be adopted en masse by the first generation that has been immersed in digital technologies pretty much since birth.

    Apple’s future is less as a device maker and more as the provider of an expansive platform of devices, content and services. In my view, the company’s focus on privacy and security is a platform differentiator and a “value added” for consumers.

    Apple Music is performing well and the forthcoming gaming service may be another popular portal for consumer engagement. For GenZ it may be more about services and engagement than about the selection of the device. By far, the iPhone is already the device of choice.

    April 8, 2019

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