With the launch of iPhone 5, the long wait and speculations regarding it have finally been rested. Taller, slimmer, lighter, iOS 6 operation system and hordes of other features have made this gizmo been touted by some as the greatest phone in the world. There's no doubt that once the phone arrives in stores on September 21, people will literally pounce on it. The sale of iPhone 5 is supposed to create far greater impacts, than just raking loads of money for Apple. An economist from J P Morgan has asserted that iPhone will boost the sluggish US economy by 0.5% in the coming quarter. This might be the first time in history that a tiny gadget will probably change the economy of a Superpower.
Although being world's largest economy, recent years of slow growth has made the United States' economy to be nearly immovable. However, the iPhone 5 release is expected to improve the nation's financial situation, which can be a great news for slow US markets.During 2011, the recorded per capita GDP (PPP) of USA was $48,450 making it the largest trading nation in the entire world. The country has a mixed economy with stable GDP growth and a discouraging unemployment rate. But this year, USA has managed a positive economic growth of around 1.5 per cent, in spite of volatile conditions of country's stubborn economy.
Though around 2% of the GDP growth is expected, it is said that iPhone 5 will contribute as an important factor affecting US GDP in fourth quarter of 2012. The estimated amount of iPhones that would be sold in fourth quarter is around 8 million, along with the sales of previous versions of iPhones being done at a constant rate. Eventually, this will have a positive impact on US economic conditions as the phone would be sold for around US$600, with an imported cost component of around US$200 which is subtracted from the GDP. This would make a contribution of US$400 to the GDP which is the estimated trade margin. The estimation is according to the calculations made with the help of retail control method and hence, considering them, it portrays that there will be a contribution of around US$12.8 billion to GDP at an annual rate. It will serve a total of 0.33 per cent point GDP growth in the fourth quarter of 2012 and hence, will ultimately serve as an economy booster for the United States.
But there is a flip side to this assertion as some economists feel that hoping the iPhone to improve US economy is stretching the expectations too far. Some even say that if people buy an iPhone with money they wanted to spend somewhere else, it won't be able to improve the GDP. But if they prefer buying it along with their regular needs, the iPhone 5 would surely have an impact on the US economy. What is surprising though is how weak US economy has become that even a 0.5% boost is seen as a radical change.
