The iPhone 5 Might Actually Boost The US GDP Itself, Says JP Morgan

The iPhone 5 Might Actually Boost The US GDP Itself, Says JP Morgan

It’s pretty clear that the iPhone is going to boost Apple’s bottom line this coming Wednesday, September 12, when it’s expected to release along with an invite-only event at the Yerba Buena Center in San Francisco. Michael Feroli, chief economist for investment firm, J.P. Morgan, thinks it might actually raise the overall U.S. economy.

Yeah, that’s kind of a big deal.

According to Reuters, Feroli and the other analysts at J.P. Morgan expect to see sales at about 8 million units of the upcoming iPhone 5 in the fourth quarter alone. If the new iPhones sell for an average of $600 apiece, the effect on gross domestic product will be significant, even if discounted imported component prices are taken into account.

“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 made sure to caution readers of his note this evening, saying that the impact may actually be a bit of an overestimate, “and for that reason should be treated skeptically.” He continued, noting that when the previous model iPhone was launched in October of 2011, it outperformed all sales expectations.

“Given the iPhone 5 launch is expected to be much larger, we think the estimate mentioned … is reasonable,” Feroli wrote.

It’s fascinating to see the cultural and financial impact this one device from one device manufacturer is having across our world. Only time will show the full measure of the iPhone’s effect on the world as we know it.

How about you? Will you be contributing to the rise in the U.S. gross domestic product this week? Let us know in the comments below.

  • Tallest_Skil

    So… I guess people aren’t “depressed” (rumor) or “disappointed” (trolls) about it, then.

    Huh. Strange what happens when you stop listening to idiots: the truth.

  • joniels

    From Telecom-leader Ericsson: “New study quantifies the impact of broadband speed on GDP”
    http://www.ericsson.com/news/1550083

  • joewaylo

    Same old ui though continuing the disappointment to others though to troll on.

  • The_Truth_Hurts

    The Samsung Galaxy S III, Galaxy Note, HTC One X, RAZR MAXX, etc… has all the same impact on the economy as the iPhone.

    If the iPhone was built in the US….? Completely different story then. But a Chinese made phone that (really) only helps the Chinese and the bank accounts of these companies overseas.

About the author

Rob LeFebvreAnchorage, Alaska-based freelance writer and editor Rob LeFebvre is Cult of Mac's Culture Editor. He has contributed to various tech, gaming and iOS sites, including 148Apps, VentureBeat, and Paste Magazine. Feel free to find Rob on Twitter @roblef

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