Why Apple AirPods are the hottest Christmas must-have for Gen Z

Nov 21 , 2019

AirPods ‘just keep hitting new highs’ in terms of unit sales, according to Apple CEO Tim Cook. Photo: Crystal Cox/Business Insider

Apple remains the most desirable brand for festive shoppers – followed by Nike and Louis Vuitton – but the iPhone is losing its buzz as trending wearables such as the Apple AirPods and Apple Watch capture the flavour of 2019

Apple's AirPods are becoming an increasingly common item on the holiday wish lists of those who fall into the Generation Z age group, according to a new survey from investment bank and asset management firm Piper Jaffray.

In other words, they’re a hit with today’s teens.

The firm surveyed about 1,000 US consumers between the ages of 18 and 65 about how they plan to spend their money during the holiday shopping season. As part of the survey, Piper Jaffray also asked Gen Z participants about the items that topped their holiday wish lists.

Apple iPhones are losing desirability as a Christmas gift, according to the new research.

Apple emerged as the most-mentioned consumer brand among the upper-income Gen Z population, with just below 10 per cent of the vote. Mentions of AirPods were at 2.3 per cent in Piper Jaffray's 2019 survey – up from 1.9 per cent in 2018 and 0.1 per cent in 2017. Otherwise, Nike was the second most-mentioned brand among teens, and fashion house Louis Vuitton was third.

The iPhone was still the most-requested Apple product, but fewer teens are mentioning Apple's smartphones as a top holiday wish list item in 2019 compared to years past. Mentions of the iPhone were at 3.4 per cent in the firm's 2019 survey, marking a decrease from 4.5 per cent in 2018 and 6.3 per cent in 2017.

The takeaways from the report echo ongoing trends found within Apple's broader business. Revenue from the iPhone has been declining in recent quarters, while other product areas like services and wearables have been booming.

The new Apple Airpods Pro are likely to land in thousands of stockings this winter.

Reporting quarterly earnings at the end of October, Apple revealed that its wearables, home and accessories division grew more than 50 per cent year-on-year to US$6.5 billion. That makes it larger than Apple's iPad business and almost as big as its Mac product division, the latter of which earned the company US$6.9 billion in revenue during that quarter.

Apple CEO Tim Cook attributed the growth in its wearables division to the success of products like its AirPods and the Apple Watch. Apple doesn't break out specific unit sales or revenue figures for individual wearables products, but Cook admits that the AirPods “just keep hitting new highs”.