Gen Z’s Apple Fanboy Status Might Propel The Giant to Increased Ad Revenues

Apple has a strong grip on Generation Z in the US, as 34% of iPhone owners are from this group, nearly three times the 10% of Samsung. Additionally, Apple ranks in the top 20 favorite brands of Gen Z, while Samsung does not. Even with the slowing demand for smartphones, Apple‘s overall market share grew from 35% to 50% last year, according to Counterpoint.

This is despite the average iPhone costing roughly three times that of an Android device. In contrast, older generations have an even split between Android and iOS. Gen Zers are spending up to six hours daily on their smartphones, and Apple‘s popularity is having an effect on their social circles.

Android and Apple phones are divided by the color of their messages – Android phones send messages in green, while Apple‘s iMessage system displays messages in blue. This small difference is creating social pressure for people to get an iPhone for themselves. Additionally, the iMessage system is connected to many Apple devices, such as MacBooks, Apple Watches, and AirPods, making it unlikely for users to switch to Android.

This ecosystem is creating a barrier that is hard for competitors to break through. According to research, 83% of Apple users below 25 in western Europe plan to keep using iPhones, while less than half of Android users of the same age plan to remain with Android. With Gen Z growing up, this will help Apple to expand their market position.

The fact that iMessage is exclusive to Apple products plays a huge role in the company‘s success. Not only does it keep users locked into their products, but it is also helping to boost the business. For example, according to Canalys, every 100 iPhones shipped result in 26 iPads, 17 Apple Watches, and 35 pairs of AirPods being sold. This number is significantly lower for Samsung, with only 11 tablets, six smartwatches, and six wireless earbud pairs being sold for every 100 smartphone shipments. Apple‘s increasing market share among Gen Z as well as their understanding of the demographic will help them build their advertising business.

This comes on the back of Apple’s much-bemoaned iOS14 move that cleared the way for Apple to play big with the owernship of data and further contributes to their positioning as a future advertising giant.  It remains to be seen how Apple will monetize this advantage, but don’t worry, it’s coming.