- Apple's latest iPhone ads seem to be targeted at Gen Z, who are buying their first phones, by showing modes of use and functions that would appeal to younger people. - The study found that current phone platform preference was more important than age in how people responded to the ads. People are very brand loyal and the ads did not persuade Android users to switch. - iPhone users did not feel more inclined to upgrade, while older participants felt the ads were not directed at them. - Apple's ad strategy appears to be to capture customers young by showing features that resonate with a hip, creative, fun approach to appeal to younger demographics.

1. Apple Mini CX Study
September 19, 2018
What’s with Apple’s latest iPhone ads?

2. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Lija Hogan
Director, Enterprise
Research Services,
UserTesting
Tiffany Zhong
Founder and CEO,
Zebra Intelligence
@tzhongg

4. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
4
$53B 17% 60%
Q3 2018 Revenue Increase from Q3 2017 International Sales Net Income
Most recent numbers
$11.5B

5. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Tim Cook, Apple CEO
“Our Q3 results were driven
by continued strong sales of
iPhone, Services, and
Wearables.”

6. A brief history

7. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?

8. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?

9. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
“We’re going after the
95 out of 100 people
not using Macs.”
Steve Jobs, Former Apple CEO

10. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?

11. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?

12. How does the emotional experience of
ads differ between older and younger
participants?
Do the commercials resonate with
Android users too?
Do the commercials impact phone
preference?

13. What do current
iPhone ads say about
Apple’s strategy?

14. Who are we now?

15. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Source: Pew Research Center

16. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?

17. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
10.3
Average age of first
cell phone purchase

18. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
18
‘94-’14 46%
Birth years Minorities
Gen Z

19. Who is Gen Z?
● 96% have a smartphone
● Up to 11 hours per day on social media
● Annual spending: $44bn
● Influence: $600bn

20. What are the best ways to
reach Gen Z?

21. How do we market to Gen Z?

22. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
iPhone X - Unlock

23. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
iPhone X - Unleash

24. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Current platform
preference was more
important than age.
18-25
More likelyLess likely 3.02.8
Finally, based on the ads you saw today, do you feel less likely (1) or more likely (7) to
purchase an Apple iPhone in the future?
25-35
55+
3.8
Android/Pixel
iPhone
18-25
More likelyLess likely 4.9
25-35
5.0
55+

25. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
People are very brand
loyal.
“Samsung Phones have always been reliable and
customizable being the reason why I continue to
purchase them…. Although some commercials will not
persuade me to buy a brand new $1000 phone.” Male,
21, Android
“All the benefits visualized about Apple are available with
Samsung. I did not see anything that I do not currently
have access to.” Female, 63, Android
“I am not interested in switching. I like Android, I like the
interface and it is what I am used to. The ads did not
really seem to relate to me, and the things offered were
not appealing enough to switch.” Female, 28, Android

26. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
iPhone users did not feel
the need to upgrade faster
“I have always been a happy iPhone/iPad owner/user, and these ads just
strengthen my beliefs that the features, functions, and quality of Apple's
products make them the right ones for my family and for me and, therefore,
make the iPhones the only smartphones for us.” Female, 61, iOS
“I am no more likely or less likely to purchase an
iPhone since I already know that I will not buy another
Android. These ads did nothing to change that.”
Female, 28, iOS

27. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Older participants felt ads
were not directed at them
“The ads were biased toward a younger group of consumers and it
would be more likely for me to pay attention to the ad if they were
more multi-generational. Middle aged people have an interest in
newer technology and have the money to pay for it. The ads were
good but based on only one age group for the most part.” Female,
61, iOS

28. ➢ Ads are targeted at Gen Z - people who are
buying their first (or second) phones
➢ They show modes of use
➢ They show uses that younger people are more
comfortable with

29. AppleMiniCXStudy:What’swithApple’slatestiPhoneads?
Apple ad
strategy
Capture customers young
Features/functions resonate
Hip, creative, fun

30. Q&A
If you have any questions or would like more information please contact: webinars@usertesting.com

31. Thank You!
If you have any questions or would like more information please contact: webinars@usertesting.com