Feeds

iPhone 5 to boost US GDP says JP Morgan

.33% bounce predicted from 8 million Q4 sales

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

The imminent release of the iPhone 5 could add 0.33% to growth of the USA's gross domestic product, according to JPMorgan Chase Bank's Michael Feroli.

In a note titled Can one little phone impact GDP?" Feroli concludes that yes, it can, because:

“Our equity analysts believe around 8 million iPhone 5's will be sold in the US in Q4, even while sales of previous generation iPhones are maintained at a solid pace.”

Working on a price-per-phone of US$600, and costs of US$200 to manufacture and import each phone , Feroli those 8 million phones will “boost Q4 GDP by $3.2 billion, or $12.8 billion at an annual rate. This would boost annualized GDP growth in Q4 by 0.33%-point.”

Feroli does say these calculations have a back-of-envelope roughness to them and should not be taken as gospel, but does not that “The last iPhone launch was at a similar time last year. In October of last year, when the iPhone 4s first became widely available, overall retail sales that month significantly outperformed expectations.”

The iPhone 5, he thinks, will be a bigger launch than the 4s, leading him to say “we think the estimate mentioned in the first paragraph is reasonable.”

The news of a GDP boost will almost certainly be welcomed by candidates in the US presidential election, given the land of the free's stuttering recovery from the great recession. Of course it will be hard for either Barack Obama or Mitt Romney to claim credit for the growth as data on the economy's performance is published retrospectively. Whether they'll be able to resist talking up an iPhone-led recovery is another matter. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.