Apple’s iPhone has been the go-to smartphone for teenagers for nearly a decade, and its strong hold on this demographic continues to grow. A recent survey conducted by Piper Sandler with over 9,000 respondents reveals that a whopping 87% of teens now own an iPhone, which is close to the record high of 88% achieved earlier this year.
Since early 2018, teen ownership of iPhones has never dipped below 80%, and it has consistently remained above 60% since 2014. These numbers clearly highlight Apple's unwavering dominance in the teen smartphone market over the years.
In today's premarket trading, Apple's stock (ticker: AAPL) is relatively stable, while futures tracking the tech-heavy Nasdaq 100 are up by 0.4%.
The survey also sheds light on future purchasing plans among teenagers. Around 23% of respondents expressed their intention to upgrade to the new iPhone 15 this fall or winter, slightly lower than the 25% who had planned to buy the iPhone 14 last spring. Additionally, the demand for AirPods remains remarkably high among teens.
As Apple's most crucial product, the iPhone accounted for 48% of the company's sales in the most recent quarter, ending in June. Given that the iPhone consistently contributes to around half of Apple's quarterly sales, it is crucial for the company to maintain its relevance among the younger consumer base to satisfy Wall Street.
The positive findings from this survey indicate that Apple is successfully achieving this goal, which bodes well for both the brand and its stock performance.
Currently, Apple stock trades at 27.2 times the per-share earnings expected for the coming year, surpassing its five-year average of 23.5 times. This suggests that the stock may be relatively expensive compared to its historical value.
