Among teens, Apple is no longer cool. The news comes from the Buzz Marketing Group, an agency that specializes in youth marketing.
Popularity is always a double-edged sword with teenagers and according to the sentiment observed by Buzz, Apple is now too popular to be popular. Replacing iPhones and iPads as the object of teens desire is Microsofts (MSFT) Surface tablet and Galaxy smartphones from Samsung (005930).
Teens are telling us Apple is done, Buzz Marketing Groups Tina Wells told Forbes. Apple has done a great job of embracing Gen X and older [Millennials], but I dont think they are connecting with Millennial kids. [Theyre] all about Surface tablets/laptops and Galaxy.
Microsoft (MSFT) also gave Apple a big assist over this period by being completely asleep at the wheel when it came to designing a mobile operating system capable of translating Windows to a post-PC world. Microsoft seems to have finally woken up to the mobile world with the release of Windows 8, although the companys transition from creating desktop-centric software to mobile-centric has experienced more than a few hiccups and will likely take some time to fully mature as an OS.
But even though its taken Apples competitors a while to catch up, that doesnt change the fact that Apple for the first time in a while is facing some pretty fierce competition in the consumer electronics market. What makes this particularly challenging for Apple is that its getting hit on two fronts: Competitors are releasing top-notch smartphones on the high-end such as the Galaxy S III while simultaneously chipping away at Apples once-dominant tablet market share on the low-end with the $200 Amazon (AMZN) Kindle Fire and the Google (GOOG) Nexus 7.
Whats more, Apple last year acknowledged consumer preferences for both larger smartphones with the iPhone 5 and smaller tablets with the iPad mini. The latter product was particularly significant because the late Steve Jobs had been skeptical that consumers really wanted to own smaller tablets. The company whose philosophy was once seemingly governed by Jobs notion that consumers often dont know what they want until you show it to them is now learning that consumers may want things that Apples competitors are showing them as well.