JP Morgan says iPhone 5 could bump U.S. GDP noticeably

Credit: flickr/Scott Swigart

Wall Street firm says Apple could sell 8 million iPhone 5 units before the end of the year, and boost U.S. GDP by as much as a half percent.

Michael Feroli, chief economist of JP Morgan, sent a note to clients on Monday that the expected sales price of the iPhone 5, $600, would mean as much as $3.2 billion in sales. This boost could offset the expected low Gross Domestic Product growth of 2.0 percent, reports Reuters.

Projections are always iffy, and The Register's “iPhone to account for half of US economy by 2030 – projection,” story extrapolates more for entertainment than education. But snarky as The Register is, the story is right when it says the iPhone market was zero percent of the economy in 2007, and while disappointing to some, the launch of the iPhone 4S doubled the iPhone market share in the U.S.

Hype squared

I think you are giving apple a little too much credit.

Reuters5555 on reuters.com

It wasn't long ago the same was said of Nokia and Finland.

Anonymous Coward on theregister.co.uk

And this is why I don't have any money with jp morgan anymore.

Ristogod on dailytech.com

Sad if true

If this is true it is one of the saddest commentaries on the US economy I have ever read! How a “toy” can increase GDP by half a percent... Very sad, indeed.

upstater on reuters.com

Seriously, though, economists are mad, and so is the notion of money in the modern world.

Mike Bell on theregister.co.uk

Unfortunately all of the money goes to executives and wallstreet, nothing goes to american workers.

Jeffk464 on dailytech.com

Disagreements

the $600 in revenues they collect comes from Wireless providers, who in turn charge customers monthly fees to recover that cost, it takes a year on average to recover that $600 from consumers i.e. Consumer Spending. And Consumer Spending is what goes into GDP, not what APPLE collects from providers.

student1 on reuters.com

If its true then god help the US economy because most of the manufacture and production of the iPhone happens outside of the USA so while Apple employees might become filthy rich the majority of the US population will be out of work

Glostermeteor on theregister.co.uk

I'm always skeptical about these kinds of analyses, as there's always a substitutive effect. When you buy one thing, you tend not to buy another.

Mint on dailytech.com

Do you believe the iPhone 5 will have a noticeable positive impact on the U.S. economy? Will you buy the new iPhone?

For the latest IT news, analysis and how-tos, follow ITworld on Twitter, Facebook, and Google+.

Now read this:

Developer declares 'I am done with the Freemium Business Model'

Khan Academy offers JavaScript as their first computer language

Study says Facebook profile can predict job performance

From CIO: 8 Free Online Courses to Grow Your Tech Skills
Join the discussion
Be the first to comment on this article. Our Commenting Policies