New York: Appleās new iPhone 5 may give a significant boost to the overall US economy, according to Michael Feroli, JP Morgan’s chief economist.
He opined that the sales of the next generation smartphone, set to release this week, could add between a quarter and a half percentage point to fourth quarter annualised growth in the US, Reuters reported.
“Calculated using the so-called retail control method, sales of iPhone 5 could boost annualised 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.”
JP Morgan’s analysts expect Apple to sell around 8 million iPhone 5s in the fourth quarter. They expect the sales price to be about $600.
Feroli said the estimate of between a quarter to a half point of annualised GDP “seems fairly large, and for that reason should be treated sceptically.” But, he added, “we think the recent evidence is consistent with this projection.”
Feroli said that when the last iPhone was launched in October 2011, sales significantly outperformed expectations.
“Given the iPhone 5 launch is expected to be much larger, we think the estimate mentioned … is reasonable,” Feroli wrote.
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