Tech

JP Morgan: iPhone 5 could add up to .5 percent to GDP growth

Josh Peterson Tech Editor
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Financial services firm JP Morgan is among the many voices with high expectations for the new model of Apple’s heavily anticipated flagship mobile device, the iPhone 5.

“We believe the release of iPhone 5 could potentially add between 1/4 to 1/2%-point to fourth quarter annualized GDP growth,” said the firm in an official report from earlier this week.

U.S. GDP in 2011 was $15.094 trillion, according to recent data from the World Bank.

“Our equity analysts believe around 8 million iPhone 5’s will be sold in the US in Q4, even while sales of previous generation iPhones are maintained at a solid pace,” said JP Morgan.

While JP Morgan admitted that its estimates seem “fairly large,” even stating that it should be treated “skeptically,” it went on to say that “the recent evidence is consistent with this projection.”

The firm looked to Apple’s performance last October for indicators of how it will do in the Q4.

“The last iPhone launch was at a similar time last year,” said the firm. “In October of last year, when the iPhone 4s first became widely available, overall retail sales that month significantly outperformed expectations.”

From the time the markets opened at 9:30 a.m. until about 2 p.m. on Wednesday, Apple shares fluctuated between $658.38-$668.57, peaking during the company’s announcement of the iPhone 5 between 1 p.m. and 2 p.m.

The device, available for pre-order on Friday, ships September 21.

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