J.P. Morgan: New iPhone Could Boost U.S. GDP By Up To 0.5 Percent

Posted on Sep 11 2012 - 5:39am by Editorial Staff

Apple iPhone 300x182 Apple’s New iPhone Will Make Its Debut On Wednesday, September 12th

With standing a day away from Apple to launch its next instalment of iPhone: the iPhone 5, the new iPhone could not only boost the tech giant’s bottom line, but also play an important role to the overall US economy. According to J.P. Morgan’s chief economist, Michael Feroli in a note to clients on Monday, sales of the new iPhone could add up to 0.5 percent to fourth quarter annualized growth in the U.S.

“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.”

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

(Image Source: Apple)

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.