IPhone 5 Could Account for 0.33% of GDP Growth on Q4-2012

According to Michael Feroli, J.P. Morgan’s chief economist, sales of the new Apple phone can contribute quarter and half a percentage point to annualized economic growth in the fourth quarter.

J.P. Morgan’s analysts project sales of 8 million iPhone units during the last 3 months of the year. If you do the math, at a $400 sell price after accounting for deductions, it is a 3.2 billion boost to the GDP on the fourth quarter. That figure can be larger if more units are sold.

Economists that believe on a free market economy get a point here. High demand and low supply will keep prices high and the equilibrium point provides such a great margin that it will contribute to the growth of the GDP. The Congress, the White House, or the Federal Reserve have not been able to achieve this goal. However, a product with great features and ease of use may manage it.

My take on this is that if more marketers and companies that create and manufacture products for mass consumption focus on creating value and quality for the consumers, we would have a better economy. Read more on this subject at the Wall Street Journal

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About Ivan Cevallos

Blogger, entrepreneur, strategist, and digital producer. View all posts by Ivan Cevallos

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