But that was when Apple was still a comparatively plucky $100 billion upstart. Now that Apple effectively is the smartphone and tablet establishment, consumer goodwill seems to be on the wane. Its latest TV ads, which make its older users look like bumbling oafs, have been widely panned and have since been pulled. Was that reaction justified? Perhaps not.
Marketing firm YouGov has been tracking Apple's favorability among both old and young consumers, and in recent months the company's strong favorability advantage in the 18-to-35 demographic has slipped. Apple's after their parents now -- for the first time in years, consumers over age 35 have a more favorable view of the company than those in the "cool" demographic.
Apple's future might be graying, but that doesn't mean it won't be flush with green. Read on to find out why this strategy makes sense in the long run.
Behind the buzz
YouGov's BrandIndex is a daily tracker of brand perception. Respondents to their regular polls answer the question: "If you've heard anything about the brand in the last two weeks, through advertising, news, or word of mouth, was it positive or negative?" The discrepancy between positive and negative responses creates a "Buzz score" between positive and negative 100, with zero representing an even balance. Here's how the scores have changed for Apple over time:
Apple's scored highly in both demographics for years, but a trend has emerged lately -- younger consumers are hearing fewer positive things, while older consumers' views are little changed from the start of BrandIndex tracking in 2008. Those in the 18-to-35 age bracket reported a 50+ Buzz score early in 2008 and have steadily reported lower scores since, with their current result holding steady at 24. Those older than 35 have a score of 32, which is virtually identical to the earliest reported scores.
Go where the money is
Older consumers make ideal targets for Apple's new hand-holding style of advertising. The new "Genius" ads aren't as cool as the Mac vs. PC commercials that helped ignite Apple's resurgence and put Microsoft
Age, Head of Household
2010 Median Income
2010 Median Net Worth
|Less than 35||$35,100||$9,300|
Source: Federal Reserve.
Older consumers have higher incomes and a great deal more saved up. They can afford a second iPhone for the kid, an iPad for their significant other, and a new MacBook for work, and they can buy all three this year if needed. These consumers aren't as plugged in to the constant one-upmanship of consumer electronics, hence a steadier buzz score.
Youth in revolt
Apple's declining favorability with young people shouldn't be ignored, though. YouGov's scores have roughly tracked the poor market performance of Apple's erstwhile competitors Nokia
As you may remember, Apple went on to post record-breaking year-end revenue, while Nokia and RIM both continued to slide:
Meanwhile, Apple and Google
Older consumers might have more to spend, but many of them listen to their kids when it comes to tech purchases. I can't imagine that Apple will abandon the taste-making demographic yet, but its upcoming iPhone 5 release will be a critical driver of near-term consumer attitudes. Will Apple knock it out of the park, as we've come to expect? Or will this be another one of those rare missteps that seem to happen more frequently in the post-Jobs era?
The best way to keep ahead of Apple's relentless release cycle is The Motley Fool's new premium research service. Our top tech analysts will bring you all the coverage you need for a full year, at less than the cost of your average buy order. Get your deep dive started today.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter, @TMFBiggles, for more news and insights. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services have recommended buying shares of Google and Apple and creating bull call spread positions in Microsoft and Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.