LONDON, UNITED KINGDOM--(Marketwire - Oct. 25, 2012) - Ok, so the first iPhone may have been originally dubbed as the "Jesus Phone", but five years on, certain analysts are surprisingly claiming that Apple's latest flagship phone has the potential to resurrect the US economy.
How? You may ask...
Well, JP Morgan's Chief Economist Michael Feroli claims that the iPhone 5 could have a significant material impact upon US Gross Domestic Product (GDP) in the fourth quarter of the year. In addition, Feroli adds that iPhone 5 sales could add between 0.25% and 0.5% to the sluggish US economy growth rate.
The experts at JP Morgan also expect Apple to sell approximately 8 million units in the fourth quarter at a price of around $600. So subtracting about $200 in imported component costs, the government would be able to factor $400 per phone into the GDP calculations for the fourth quarter. This, Feroli believes, could enable sales of the iPhone 5 to boost annualised GDP growth by $3.2 billion at an annual rate.
In addition, the Commerce Department reported on Monday 8th October that retail sales grew by 1.1% in September, which outpaced economists' predictions of 0.7% to 0.9%. This boost was largely driven by a 4.5% increase of sales at electronic retailers, with these gains being attributed to the launch of the iPhone 5. So it seems that there may be some truth to Feroli's claims.
Yet there has been some scepticism to Feroli's report. Some analysts point out that people buy an iPhone with money that they would have spent elsewhere, meaning that the GDP boost will be somewhat limited.
But in spite of this, Currencies Direct, the UK's leading provider of currency exchange, believes that the iPhone 5 can make a difference to the US economy. Not only does it have the potential to boost GDP, but it may also help improve interest rates and the dollar to pounds exchange rate.
For more information regarding exchange rates, visit the Currencies Direct website.
About Currencies Direct
Currencies Direct is one of Europe's leading non-bank providers of currency exchange payment services. Since its formation in 1996 Currencies Direct has evolved and positioned from being an innovative service provider of foreign exchange for consumers and high net worth individuals into a dynamic and pioneering 'business to business' fully integrated treasury solution service provider.
Head quartered in the City of London (United Kingdom) with operations in Europe, Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a privately owned investment company.