Could it be that walking around with little white plastic tubes sticking out of your ears has actually become cool?
From a deeper dive into the Taking Stock with Teens Spring 2021 survey by analyst Harsh Kumar that landed on my desktop Thursday:
Apple’s share of smartphone ownership continues to increase in Piper Sandler’s Taking Stock with Teens Spring 2021 survey. Of the ~7,000 respondents, 88% have an iPhone, the highest percentage we have seen in our survey and up from 85% in the Spring-20 survey. In addition, iPhone may have room to move higher, with 90% of teens anticipating their next phone to be an iPhone. This metric is also the highest ever in our survey history and up from 88% in last Spring’s survey. Apple’s other hardware products showed strong results, with 28% of teens owning an Apple Watch and nearly 70% of teens owning AirPods. Overall, we view the survey results as a sign that Apple’s place as a dominant device brand among teens remains well intact.
Apple Watch and AirPods Increasing Penetration: The Apple Watch remained the #1 smartwatch among teens, with 28% of respondents owning an Apple Watch. In addition, we note only 34% of teens own a smartwatch, meaning Apple controls ~84% of the market. For AirPods, nearly 70% of teens noted they already own the product, up from 52% last Spring. Overall, we believe the already strong attach rates demonstrate Apple’s ability to drive additional hardware growth outside the company’s primary product set...
Overall, we believe results continue to suggest a strong preference for Apple products among American teens. We see these trends are important as the company looks to drive services revenue and complementary hardware products in order to drive further revenue growth. In addition, while the premium smartphone market has largely become a mature market, we believe Apple’s ability to maintain and slightly grow its market share provides a solid base for growth as the 5G product cycle refresh continues to play out over the next few years.
Maintains Overweight rating and $160 price target.
My take: AirPod ownership among TV reporters and talking heads may be even higher.