Apple iPhone 5 launch could boost US economy

Launch of gadget could add up to half of a percentage point US economic growth in fourth quarter

LAST UPDATED AT 08:23 ON Tue 11 Sep 2012

The iPhone 5, which Apple plans to unveil tomorrow, could do more than boost the tech firm's bottom line. According to J.P. Morgan Chase & Co.'s chief US economist Michael Feroli, sales of the new phone could add between a quarter and a half of a percentage point to the annualised rate of US economic growth in the fourth quarter. Feroli laid out his thinking in the Wall Street Journal: eight million new iPhone units sold between now and the New Year at $600 each (less about $200 in imported components, so $400) could boost US GDP by $3.2 billion. That's $12.8 billion at an annual rate, roughly a third of a percentage point in the annualised rate of GDP growth.

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