Piper Sandler analyst Matt Farrell surveyed around 13,500 teens to see Apple Inc.'s (NASDAQ:AAPL) iPhone upgrade expectation among them.

Notably, Apple unveiled the iPhone 16 in September, and early pre-order data shows that demand for the iPhone 16 may be lower than expected due to a lack of reasons for existing iPhone owners to upgrade to the latest model.

The analyst's survey results indicate that 22% of teens plan to upgrade to an iPhone 16 this Fall/Winter, slightly down from 23% in Fall 2023 and 24% in Fall 2022. However, this is an increase from 20% in the Spring 2024 survey, adds the analyst.

As per the Fall 2024 survey, Farrell notes that 87% of teens owned an iPhone, consistent with historical levels. Additionally, 88% of teens expect their next phone to be an iPhone, aligning with recent survey trends.

Moreover, the analyst writes that only about 30% of teens intend to upgrade any Apple hardware in the next six months due to Apple Intelligence, which seems low considering their enthusiasm.

Related: Apple iPhone 16 Selling At A 'Greater Rate Than Last Year,' Says T-Mobile CEO Amid Reports Of Lower Demand: 'People Are Buying Pros, They're Buying Maxs...They're Buying Up The Food Chain'

The analyst notes that the average iPhone among teens is roughly three generations behind the iPhone 16, suggesting these older models may be overdue for an upgrade.

In addition, Farrell says that over 70% of teens own AirPods, and 25% plan to purchase them in the next six months.

Also, more than 30% of teens surveyed own an Apple Watch or iPad, adds the analyst.

The analyst rated the company Neutral with a price target of $225.

Also Read: Apple Revenue Growth 'Just Too Slow For Investors To Get Excited About': Analyst Highlights Advertising As Future Catalyst

Price Action: AAPL shares are up 1.22% at $228.52 at the last check Wednesday.

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