If you buy an Apple iPhone 5 you’ll be something very good for the U.S. economy. The chief economist at J.P. Morgan, Michael Feroli, estimates that sales of the new iPhone could possibly add from 1/4 to 1/2 percent to the annualized growth rate of U.S. gross domestic product in the last quarter of the year. Since the nation’s total GDP is only expected to grow 2% in the last quarter, the iPhone 5 alone could make up 25% of the entire country’s economic growth!
A Feroli put it in financial geek-speak, “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.”
Analysts at J.P. Morgan predict that Apple will sell 8 million iPhone 5s this year, each with an expected retail price of around $600. Add in a couple of adjustments to account for the fact that most of us up our carrier contracts rather than pay full retail, and the price of each phone still puts $400 into the economy.
Feroli added that his estimate for annualized growth should be taken with a grain of salt, as it “seems fairly large,” but he points out that the iPhone 4S launch a year ago significantly increased retail sales that month. Both online sales and computer sales had their largest monthly increase on record.
Remember this when you’re handing over a few hundred bucks for your new iPhone. You’re making a contribution to putting the U.S. back on the road to prosperity.
Apple’s press event, where they are expected to tell all on th