Apple Enthusiasm Among Teens Dips Despite AI Rollout

Have America’s teenagers soured on Apple’s flagship device? Not quite.

But enthusiasm about the iPhone among young people appears to have dipped slightly, Seeking Alpha reported Sunday (Oct. 13), citing a survey by investment firm Piper Sandler.

The survey of 13,500 teenagers found that 22% planned to upgrade their phones to an iPhone 16 — Apple’s latest model — in the coming months, down from 23% in 2023 and 24% in 2022.

Of the teens surveyed, 87% owned an iPhone, compared to 88% last year. And the 22% figure is an increase from when Piper Sandler conducted its survey in the spring and found that 20% of teenagers planned to purchase an iPhone 16.

Of the teens that plan to upgrade their phones, 29% said they were doing so because of Apple Intelligence — Apple’s new artificial intelligence (AI) offering —  which Piper Sandler said “feels low given the enthusiasm.” Just one out of six teenagers said they were not aware of the AI tool.

The report notes that although some observers believe the iPhone 16 will launch a “super cycle” among consumers eager to upgrade their phones, it’s not clear if teenagers will be among them, as the survey showed the average teen is around three generations behind the iPhone 16.

Around 18% of teenagers own an iPhone 15, while 25% said they had an iPhone 13, “slightly below the iPhone 14 ramp after 1-year post-launch” the survey said.

Despite teens’ low-level interest in Apple Intelligence, research by PYMNTS Intelligence shows that younger generations are at least curious about melding AI technology with shopping.

That’s according to the report “AI-Enabled Payments Enhance Customer Options,” created in collaboration with ACI Worldwide.

“The results reveal that a minority of consumers — 44% — is at least somewhat interested in integrating AI technologies into shopping experiences,” PYMNTS wrote in March. “Yet, that share rises to include more than half for younger generations, with 69% of Gen Z consumers and 54% of millennials and bridge millennials reporting that they are interested.”

Meanwhile, experts interviewed by PYMNTS say that Apple Intelligence could someday transform the digital commerce landscape.

“Apple’s AI integration could bring us closer to the concept of a true AI assistant — something that’s portable, convenient and seamlessly integrated into our daily lives,” Ryan Waite, vice president of public affairs at Think Big, told PYMNTS in August. “While we’ve seen attempts at this with devices like Rabbit, they haven’t fully delivered on the promise.”