Apple corrals upscale consumers’ desire with iPhone 7 launch: report

When the Apple iPhone 7 launched in September many of the consumers standing on line to be the first of their peers to own the brand's latest smartphone were also frequent luxury apparel shoppers.

In Verve Mobile’s “2016 New Smartphone Release Report,” the location-based insights agency gleaned insights on the type of consumer who were among the first to upgrade their devices to iPhone 7. Increasingly, Apple devices have been a status determinator, and the consumer electronics maker has done well at positioning itself with luxury heritage brands through marketing, collaborations and in-store experience (see story).

Apple luxuries
Verve’s data was gathered on Sept. 16, the day the iPhone 7 became available for purchase in-store at Apple’s bricks-and-mortar network. In its report, Verve sought to show that the Apple consumer, especially those aiming to be the first to upgrade his device, are believed to be upscale, trendy and early adopters of new technologies.

The report found that 80 percent of consumers on line to purchase an iPhone 7 already had an older model of an Apple smartphone. Luckily for Apple, 12.8 percent of purchasers of the iPhone 7 had previously had Samsung devices (see story).

Apple iPhone 7 comes in 5 model variations

Samsung is currently dealing with a PR nightmare, with its latest Galaxy Note 7 smartphones having the habit of exploding. The brand has since recalled all smartphones of that model, but frustrated consumers may have been swayed toward Apple as a replacement, just as it launched its latest iPhone.

The upgrade demographic leaned toward young consumers with expensive taste. Verve found that the consumer majority was made up of young millennials.

Apple iPhone 7's camera has been a draw for many

Verve also found that this young millennial segment is also a frequent luxury apparel shopper and often eats at high-end restaurants.

Based on Verve’s data, the Apple stores most visited on launch day include its Fifth Avenue and Spring Street locations in New York, Lincoln Park, Chicago, Highland Village in Houston, TX and The Grove in Los Angeles.