J.P. Morgan: Sales of 6th gen Apple iPhone could boost Q4 GNP by .5%

J.P. Morgan: Sales of 6th gen Apple iPhone could boost Q4 GNP by .5%
Could something like a smartphone help boost the United States' economy? According to Wall Street powerhouse J.P. Morgan, strong sales of the 6th generation of the Apple iPhone could boost Q4 annualized GNP in the U.S. by .25 to .50  percentage points. The GNP measures the total amount of goods and services produced inside a country. J.P. Morgan's chief  U.S. economist Michael Feroli expects Apple to sell 8 million units of its new smartphone in the quarter. That does not include sales of other models, including the Apple iPhone 4S, the most recent version of Apple's phone.

Feroli figures a retail price of $600 and subtracts $200 of imported parts to come up with a trade margin of $400 for Apple. The result would be an additional $3.2 billion worth of sales or $12.8 billion on an annualized basis. That would add .33% to GNP. Even though end-users might pay less due to carrier subsidies, those selling the phone usually base reported sales on unsubsidized prices.

The economist himself says that this computation should be looked at skeptically as it does provide for a rather substantial increase in GNP. But he did point out that last October's launch of the Apple iPhone 4S led to a combined sales total for all Apple iPhone models of 37 million in last year's fourth quarter. That led to an improvement of .1% to .2% in last year's annualized Q4 GNP. Feroli says that he expects the launch of the Apple iPhone 5 will be larger than that for the Apple iPhone 4S and said that the .33% increase in GNP is definitely within reach.

source: AppleInsider

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9 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

This kind of says it all: "The economist himself says that this computation should be looked at skeptically...."

2. remixfa

Posts: 14605; Member since: Dec 19, 2008

yea, this guy also forgets that since then apple came under major scrutiny for its slave labor and has since had to increase costs to quell opposition. They are not working on the same margin as they were before. Granted its not much smaller, but it will make a difference. And even if it wasnt, you are still talking a 50%+ improvement in sales needed to get there.

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

4. MeoCao unregistered

but iphones are made in china,,,

5. rusticguy

Posts: 2828; Member since: Aug 11, 2012

And then some say Obama hates Outsourcing ...

7. pikapowerize

Posts: 1869; Member since: May 03, 2012

"design in california, made in china" do you think samsung isnt made in china? most of the factories and devices are all made in china!

8. MeoCao unregistered

I think SS phones are made in Korea, but that's not the point. The point is iPhone is made in China then how can it increase US GNP? Oh I see, this is about the margin that Apple makes.

9. pikapowerize

Posts: 1869; Member since: May 03, 2012

not really made in korea, they might have a factory in korea but they also have a factory in china... coz the rumored that samsung is paying child labor! thats in china

6. chunk1x

Posts: 248; Member since: Jun 25, 2011

Just like the world needs. 0.5% more dou"he bags

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