Percentage of teens looking to buy an iPhone is close to a record high
Investment house Piper Sandler released the results of its 43rd semi-annual Taking Stock With Teens survey. The latest results show that the number of American teenagers planning to purchase their first iPhone is close to a record high. Piper Sandler analyst Harsh Kumar says that 87% of the teens responding to the firm's latest survey plan on purchasing an iPhone. Coincidentally, the survey showed that 87% of the teens responding already own an iPhone.
We said that the 87% of teens who said that their next phone will be an iPhone was close to a record high. That's because, during the Spring 2021 survey, 90% of teens were saying that their next phone would be running iOS while 88% of teens said that they already owned an iPhone in that survey. Kumar said that the results were encouraging for Apple.
And in a boost for Apple's large Services unit, teens' favorite money transfer app is now Apple Pay which toppled previous leader Venmo in the latest survey. The analyst sees the results forecasting growth in the Services unit which took in $68 billion during fiscal 2021. Apple's Services unit includes the App Store, Apple Pay, Apple Care+, Apple Music, Apple Arcade, Apple Card, Apple TV+, Apple News+, Apple Fitness+, iCloud, iTunes Store, and more.
87% of teens surveyed say that their next phone will be an iPhone
With over 1 billion active iPhones, Apple has a large number of possible buyers ready, willing, and able to spend on Services including recurring subscriptions. It's that word "recurring" that brings a smile to the face of Apple CEO Tim Cook.
As for the specifics of the survey, 7,100 teens responded to the survey with an average age of 16.2 years. 44 different states were represented and they live in households with an average income of $69,298. 39% of the teens are employed part-time. Either they live in a household that is well off, or they are able to afford to buy the iPhone using their own paycheck.
Piper Sandler's Kumar rates Apple overweight and has a $200 target on the stock. For those not familiar with Wall Street talk, an overweight rating has nothing to do with Eddy Cue's eating habits. It simply means that in calculating your portfolio, Apple shares should comprise a larger percentage of your portfolio compared to the rest of your holdings.
The latest survey of teens has pretty similar results to the previous Taking Stock With Teens
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