The next generation iPhone 5, which Apple Inc plans to release this week, could not only boost the tech giant's bottom line - but could give a significant boost to the overall US economy.
Sales of the new iPhone could add between a quarter and a half percentage point to fourth quarter annualized growth in the US, according to JP Morgan's chief economist, Michael Feroli in a note to clients on Monday.
Such an impact would be significant. "Calculated using the so-called retail control method, sales of iPhone 5 could boost annualized GDP growth by $3.2 billion, or $12.8 billion at an annual rate," Feroli wrote. That 0.33 percentage-point boost, he added, "would limit the downside risk to our Q4 GDP growth protection, which remains 2.0 percent."
Feroli laid out his math. JP Morgan's analysts expect Apple to sell around 8 million iPhone 5s in the fourth quarter. They expect the sales price to be about $600. With about $200 in discounted import component costs, the government can factor in $400 per phone into its measure of gross domestic product for the fourth quarter.
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Read more here: http://www.guardian.co.uk/business/2012/sep/11/apple-iphone-5-boost-us-economy?newsfeed=true
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Holy guacamole....
The wierd thing here is that JP Morgan only predicts 8 million iPhone 5's to be sold in Q4...they'll sell 40m at the absolute minimum. Mark my words.
That means it'll be ~2% boost to US GDP... :0
EDIT: nvm, they're just talking about US sales
My prediction threads:
Wii U will sell under 40m units (made on 14th September 2012)
PS Vita will sell under 20m units (made on 30th September 2012)
Wii U will sell under 7m in 2013 - I was right
