From a note to clients by analyst Harsh Kumar that landed on my desktop Tuesday:
Apple’s share of smartphone ownership remains near record highs in Piper Sandler’s Taking Stock with Teens Fall 2021 survey (here). Of the ~10,000 respondents, 87% have an iPhone, which is slightly below the 88% record set in the Spring 2021 survey. In addition, the iPhone could return to record highs due to the 88% purchase intention among teens. We note over 22% of teens plan to upgrade to an iPhone 13 this fall/winter. Apple’s other hardware metrics showed strong results, with a record 30% owning an Apple Watch and nearly 70% owning AirPods. Overall, we view the survey results as a sign that Apple’s place as the dominant device brand among teens remains well intact.
Major data points:
- 87% of teens in the Fall 2021 survey own an iPhone, a near record metric88% of teens expect an iPhone to be their next phone, also near a record
- Over 22% of teens expect to upgrade to an iPhone 13 this fall/winter. This is well ahead of the 6% metric in our most recent iPhone survey
- iPhone 12 ownership increased to 20% in the Fall 2021 survey, up from ~12%. iPhones older than two years old saw their ownership decline by ~12%
- A record 30% of teens own an Apple Watch in the Fall 2021 survey. Apple also has 86% market share among teen smart watch owners
- 30% of teens use a fitness app as a part of their workout regimen. Of fitness app users, over 50% use an Apple app
- 67% of teens own AirPods in the Fall 2021 survey, down slightly from the Spring
- Half of teens are concerned about their internet activity being tracked
- 56% of teens are not interested in Apple’s new iCloud+ service
Maintains Overweight rating and $175 price target.
My take: What U.S. teens wear, teens around the aspire to wear.