Apple’s Teen Market Dominance Persists Despite iPhone 16’s Subdued Appeal

While the allure of the iPhone 16 may have slightly waned among teenagers, Apple’s stronghold in the U.S. youth segment remains unyielding. The latest findings from Piper Sandler’s Fall 2024 survey reveal that while fewer teens are rushing to upgrade to the iPhone 16, their overall enthusiasm for Apple’s ecosystem, especially upcoming AI-driven features, is still escalating.

According to the survey, which sampled over 13,500 teenagers from 47 states, an impressive 87% of participants reported owning an iPhone. The anticipation for future purchases is also strong, with 88% of respondents planning their next smartphone purchase to be an iPhone.

This year, approximately 22% of teens expressed intentions to upgrade to the iPhone 16 during the fall or winter seasons, a slight decline from the 23% who planned to acquire the iPhone 15 and the 24% opting for the iPhone 14 in previous years. This trend underscores a shift towards longer usage periods between upgrades, with the average iPhone now lagging three generations behind the latest model, compared to a 2.5-generation gap reported two years ago.

Despite this temperance in immediate upgrade plans, the anticipation around Apple’s forthcoming AI enhancements, dubbed ‘Apple Intelligence‘, is a significant catalyst for future upgrades. Nearly a third of the teens surveyed are keen to experience these new features, indicating a robust driver for upcoming device renewals.

Beyond smartphones, other Apple gadgets continue to captivate the teen market. AirPods, for instance, are owned by approximately 70% of the surveyed teens, and about 25% are considering purchasing new AirPods in the next six months. Apple’s ecosystem extends to iPads and Apple Watches as well, with over 30% of teens owning each. However, Apple TV+ has not garnered significant traction, capturing only about 10% of teen users who dedicate a mere 1% of their total media consumption to the service. Conversely, Apple Music maintains a solid presence, with around one-third of the respondents utilizing this service.