Sales of iPhone 5 Could Boost U.S. Economy

Not only will the upcoming iPhone 5 rake in tons of cash for Apple, it could also boost the overall U.S. economy. At least that’s according to J.P. Morgan’s chief economist, Michael Feroli. In a note to clients on Monday, Feroli said sales of the smartphone could add between 0.25% to 0.5% to fourth quarter annualized growth in the U.S., Reuters reported. “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,” he wrote. Analysts at the financial services firm project that Apple will sell 8 million iPhone 5s in the fourth quarter, each with an expected retail price of around $600,” according to Reuters. With $200 in discounted import component costs, the U.S. government can include $400 per phone into its GDP for the fourth quarter, the agency said. Feroli added that his estimate for annualized growth should be met with some skepticism, as it “seems fairly large,” but emphasized that “the recent evidence is consistent with this projection.” He pointed to the iPhone 4S’ strong sales — outperforming expectations — when it launched last October. Apple sent out invitations for a press event on Sept. 12 at 10 a.m. PT (1 p.m. ET). Prominently featuring a number “5,” the invitation refers to the launch of Apple’s next-generation iPhone. The event will take place at San Francisco’s Yerba Buena Center for the Arts. Not only will the upcoming iPhone 5 rake in tons of cash for Apple, it could also boost the overall U.S. economy,at least that’s according to J.P. Morgan’s chief economist, Michael Feroli. In a note to clients, Feroli said sales of the smartphone could add between 0.25% to 0.5% to fourth quarter annualized growth in the U.S., Reuters reported,“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,” he wrote.