Is Apple's iPhone No Longer Cool To Teens?

Yow! Apple uncool? Aivars Lode Avantce

Is Apple's iPhone No Longer Cool To Teens?

On the sliding scale of coolness, teens place most adults firmly on the uncool side. It goes without saying that no teen wants to show up dressed identically as the science teacher. 

And unfortunately for Apple, this teen logic may also apply to smartphones. They don’t want to same device as their mom, dentist, and coffee barista. They want the latest, greatest phone that speaks to their generation. Samsung’s Galaxy and Microsoft’s Surface have recently introduced new and never-before-seen devices, whereas the first iPhone came out in 2007 (though new models are released each year).

Also working against Apple’s iPhone is the popular parent tradition to give their teens the old model when they upgrade their devices. Samsung and Android devices are less expensive, which makes it more likely that parents are willing to buy a new one for the teens, versus handing them a new iPhone. “There was quite some negative buzz about the iPhone 5 and the lack of a real incremental innovation, except for the screen size and weight, when compared to the 4S. So this has an effect on the originality component of coolness,” says Insites-Consulting’s Joeri Van den Bergh.

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Ultimately, in the eyes of today’s youth, massive popularity has watered down Apple’s coolness. “Teens are telling us Apple is done,” says Tina Wells of the youth marketing agency Buzz Marketing Group. “Apple has done a great job of embracing Gen X and older [Millennials], but I don’t think they are connecting with Millennial kids. [They’re] all about Surface tablets/laptops and Galaxy.”

The signs that youngest smartphone audience has cooled on Apple have been steadily accumulating over the past few months. Apple, for instance, dropped several spots or remained flat on several teen brand opinion polls, including marketing agency’s Smarty Pants’ Young Love survey. And while 67% of affluent teens still say they intend to purchase an iPhone as their next upgrade, reports Piper Jaffray, Samsung pulls in second with a strong 22%. Perhaps more importantly is the fact that it was unthinkable a mere 12 months ago that any teen would prefer any phone to an iPhone if given the option.

There are several influencing factors contributing to this cool-off. “It’s really been a perfect storm,” says Wells. As Apple devices experienced several technological glitches, competitors have stepped up their game by offering innovative and cool products at lower price points. Samsung, in particular, has been assertive, including shipping 56.9 million units in the third quarter of 2012, nearly double the 26.9 million shipped by Apple, according to Strategy Analytics. The company is also playing hardball in the court of public opinion, according to an advertising executive who works with Samsung, “The litigation floodgates are open and Samsung definitely wants to go to war, so they’re more aggressive than ever with their media for that prized [youth] demographic.” To this end, Samsung has spent millions of dollars over the past few months on an advertising campaign that paints the image that the iPhone is for old people (parents and late adopters) and teens should move onto the “next big thing.” Another key strategy used by Samsung has targeted Apple culture — rather than the brand itself — to illustrate how absurd it is to wait in line for a smartphone.

Meanwhile, Research In Motion (RIM) is attempting to move back into the youth space, and has aligned with a few youth-oriented brands, including Extreme International, to develop Blackberry-specific apps and mobile programs aimed at 16-20-year-olds.

Still, teen marketing analysts say Apple’s fate lies more with itself than with what its competitors are up to. “Everything moves in cycles and you can’t rest on your past glory. You’ve got to evolve to maintain relevance. Apple just needs to focus on innovation and teens will come back,” says Wells.

Matt Britton of the youth marketing agency Mr. Youth adds, “Samsung and the Android platform is indeed a formidable competitor. But the interwoven ecosystem and flawless nature of Apple’s products will make its growth prospects pretty much a sure thing for the foreseeable future. Remember, the entire U.S. smartphone market has just passed 50% penetration, so both platforms have nothing but growth ahead of them.”