Warm Southern Breeze

"… there is no such thing as nothing."

Apple’s iPhone 5 Sales Could Add Half a Point to GDP

Posted by Warm Southern Breeze on Monday, September 10, 2012

Apple’s iPhone 5 Sales Could Add Half a Point to GDP

Published: Monday, 10 Sep 2012 | 4:35 PM ET

By: John Melloy
Executive Producer, Fast Money& Halftime

iPhone 4S
Michael Nagle | Stringer | Getty Images News

Sales of Apple’s [AAPL] iPhone 5 could add as much as half a percentage point to U.S. fourth-quarter annualized GDP, according to JPMorgan, underscoring the ubiquitous tech company’s unprecedented influence on one country’s economy.“We believe the release of iPhone 5 could potentially add between ¼ to ½%-point to fourth quarter annualized GDP growth,” said JPMorgan’s Michael Feroli in a note to clients. “Sales of iPhone 5 could boost Q4 GDP by $3.2 billion, or $12.8 billion at an annual rate.”

RELATED LINKS

The firm’s Apple analyst estimates fourth quarter sales of 8 million units of the new iPhone, which is set to be unveiled this Wednesday. Feroli calculated his economic impact by using a $600 average selling price minus $200 in costs of foreign components, as imports subtract from GDP.

Beyond the money

“Does that mean an iPhone 10 will add 1 percent one day?” asked Short Hills Capital’s Stephen Weiss ironically.

(Read More: Apple Effect on Pandora Drop ‘Premature’: Pro)

Shares of Apple are up 18 percent in three months in anticipation of the new phone. A 70 percent increase this year has made it the most valuable company ever with a market capitalization of $637.9 billion.

By John Melloy, “Fast Money” Executive Producer, CNBC, with reporting by Jesse Bergman.

http://www.cnbc.com/id/48975662

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: