Telecom Tax Blog

    iPhone 5 to Give US GDP a Bounce

    Posted on Tue, Sep 11, 2012 @ 01:46 PM

    We do telecom tax and voip tax solutions, but we can't help but follow the amazing transformation of worldwide mobile communications.  That transformation is driven by the most amazing business transformation ever, that of Apple computer from a niche computer player to the worldwide mobile computing design and innovation leader.

    Who knew?

    Looks like the iPhone5 will give the US GDP a bounce, maybe as much as a half a point.  Take a moment to consider everything that goes into the US GDP.  A half of a point is incredible and speaks to the world’s appetite for mobile computing.

    It’s also expected that the iPhone5 will affect PC sales, include Dell.  (I bet once a quarter, some reporter asks Michael Dell about his famous advice to Steve Jobs that said that Apple should give the shareholders their money back).

    Here’s more on iPhone and GDP.

    A research note released by J.P. Morgan on Monday estimated that sales of Apple's next-generation iPhone may add between one quarter and one half a percentage point to fourth quarter annualized U.S. gross domestic product growth in 2012.

    According to the firm's chief U.S. economist Michael Feroli, estimated domestic sales of the so-called iPhone 5 will be about 8 million units in quarter four, not including purchases of carry-over phones like the iPhone 4S.

    Feroli goes through the calculations that arrived at the relatively large GDP contribution: by finding the difference between an assigned retail price of $600 per handset, similar to past launches, and an imported cost component of $200 per phone, a $400 per iPhone trade margin can be applied to the GDP.

    "Thus, calculated using the so-called retail control method, sales of iPhone 5 could boost Q4 GDP by $3.2 billion, or $12.8 billion at an annual rate," Feroli writes. "This would boost annualized GDP growth in Q4 by 0.33%-point."

     The economist goes on to note that while out-of-pocket prices may be lower due to carrier subsidies, usually about $350 per device, companies that sell the phone often report sales based on stand-alone prices.
      

    Tags: telecom tax, voip taxes

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