So extensive millennials. Baby boomers are the next big growth opportunity for tech, mainly for internet companies tied to smartphone use, according to Evercore ISI Senior Average and Internet Analyst Anthony DiClemente.
“As you think about saturation of the pubescent demographic, [boomers are] a demographic, along with international, that could as a matter of fact drive the growth,” DiClemente said on CNBC’s “Power Lunch.”
A report in investigate from Evercore estimates that only about 70 percent of Americans 55-years-old or older currently use transportable internet, versus 90 percent of their millennial counterparts. Furthermore, the boom estimates 14 million baby boomers are expected to start squandering mobile internet within the next four years.
“This is a comrade that has at least 30 percent greater annual purchasing power than the millennials, and so we reckon there is a lot of net wealth there to tap into,” DiClemente said.
DiClemente voices that the relationship between baby boomers and tech will be mutually good. As more baby boomers move to mobile, tech companies explicate user interfaces to make them more comprehensible for older people.
“This is a exercise for Snap and a theme for Twitter — improving the user interface and making it lighter to use for folks like my parents who may be less fluent in using their phones,” he utter.
As for which applications baby boomers will use, DiClemente says household delegates will likely dominate. He sees boomers favoring Amazon’s Alexa app, Google Maps and Facebook.