The semi-annual survey published by the American investment bank Piper Sandler highlights US teens' tech usage and spending habits. It involved 6,455 teens living in the US with an average age of 16.2 years and an average household income of $65,995.
The firm found that 88% of US teens own an Apple iPhone, and 25% are expected to upgrade to the upcoming iPhone 17 this fall/winter. That's a 3% rise compared to fall 2024, when 22% of teens were expected to upgrade to the latest iPhone.
The insight comes at a time when the US president imposed tariffs (and later paused them) on other countries. Apple stood out as one of the affected tech companies because a significant chunk of its supply chain exists in China. It was feared that the tariffs might significantly increase the price of the iPhone and other Apple products. However, the latest calculations suggest the impact may not be as extensive.
Apple iPhone's popularity among US teens also aligns with the Counterpoint report suggesting that the premiumization trend in the smartphone market is on the rise. About 25% of the smartphones shipped globally in 2024 have a wholesale average selling price (ASP) of $600 or more.
While the iPhone remained the leader in premiumization, its global ASP surpassed $900 for the first time. Apple has kept tight control on the iPhone's hardware and software development, allowing the company to push iOS updates quickly. Moreover, the stickiness of its ecosystem prevents people from choosing cheaper phones.
It remains to be seen how the tariffs and Apple's recent move affect teens' motivation to buy an iPhone. After this year's iPhone 16e, which lacks several popular features, the cheapest iPhone now starts at $599.
Instagram, which is finally working on an iPad app, leads the social media department with about 87% of teens using the platform monthly. TikTok (despite its uncertain future) and Snapchat follow the Meta-owned company with shares of 79% and 72%, respectively.
Netflix is the first choice for 31% of US teens to consume daily video content, followed by YouTube (26%) and Hulu (7%). US teens also use other apps, such as Uber for ridesharing (76%) and DoorDash for food delivery (73%).
Piper Sandler's survey has been running bi-annually since 2001. After surveying over 274,273 teens, it has collected more than 64 million data points on teen spending over the years. Its latest iteration found that the 'self-reported' annual teen spending reached $2,388, recording a 6% year-over-year increase.
8 Comments - Add comment