Teens are buying iPhones 'near record levels' but Apple Watch interest has slipped
Seremin
Investment firm Piper Sandler is out with its latest research report into the health and buying trends of America's teenagers and the firm noted that the picture for Apple's (NASDAQ:AAPL) hardware is a bit more mixed than in the past.
According to the survey, which questioned 9,193 teenagers (with an average age of 15.7 years) across 49 states and captured more than 2.4M data points across buying patterns and industries, ownership of Apple's iPhone is still near record levels, at 87%. Similarly, the purchase to intent is still high, at 88%. 
"We believe the elevated penetration and purchase intention are important given the mature premium smartphone market," the analysts wrote in a research report, summarizing the trends. 
"Additionally, these trends are encouraging as the company continues to introduce new iPhones proving the overall stickiness of the product portfolio. We think these positive trends can also be a catalyst for further services growth as well, as the install base for Apple hardware continues to grow."
Delving deeper, Piper Sandler found that Apple Pay is the number one payment app used in the last month at 42%, followed by Block's (SQ) Cash App at 27%, suggesting Apple's services are benefiting from its ecosystem.
(Conversely, Cash App was the most used app for peer-to-peer money transfer at 50%, followed by PayPal's (PYPL) Venmo at 36%.)
However, the picture is a bit more mixed when it comes to the Apple Watch. Piper Sandler found that while total smartwatch ownership rose to 39.1% in the most recent period, up from 36.9% in the fall of 2022, Apple Watch owners were flat, at 34%. 
Additionally, the intent to buy an Apple Watch was down, with 10% planning to buy one in the next six months, compared to 16% in the fall 2022 survey.
Last month, Apple (AAPL) unveiled the iPhone 15, along with the Apple Watch Series 9 and Apple Watch Ultra 2 at its annual product extravaganza.
There may be a bit of silver lining for Apple, as it pertains to the Apple Watch, especially amongst upper-income teens. (Self-reported spending amongst all teens was down 1% year-over-year to $2,316).
In the spring of 2023, 39% of respondents said that Apple (AAPL) was their favorite watch, followed by 35% for Rolex and 2% for Casio. In the most recent survey, 42% of respondents said Apple was their favorite watch, while just 33% mentioned Rolex.

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