iPhone 5 Sales Worth a Half Point of GDP?
We're just a day away from Apple's release event for the much anticipated iPhone 5 (and maybe iPad Mini?) and the rumor mill is going full bore. It's clear that sales of the new phone are going to be staggering, but just how big? Some folks believe that iPhone 5 sales will add a half percentage point to Q4 GDP numbers.
Think about that for a minute: a single product from a single manufacturer accounting for 50 basis points of US GDP. JP Morgan analyst Michael Feroli is anticipating sales of 8 million units worth $3.2 billion.
“We believe the release of iPhone 5 could potentially add between ¼ to ½%-point to fourth quarter annualized GDP growth,” said JPMorgan’s Michael Feroli in a note to clients. “Sales of iPhone 5 could boost Q4 GDP by $3.2 billion, or $12.8 billion at an annual rate.”
I guess all will be revealed tomorrow. For those who can't wait, here's a CNET video addressing the most persistent rumors:
So do you guys think all this hype is already baked into the price, or will this release catapult the company to $1,000 a share? I'm thinking about buying more and I'll let you know when I do.
Do you think a half point of GDP is realistic, or all hype?
*Post courtesy of Edmundo Braverman at Wall Street Oasis.+1
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