If the U.S. economy looks a little merrier this December, its Santa Claus will be the iPhone 5. U.S. sales of Apple's latest must-have gadget could pump more than $3billion into the economy by year's end, say some economists and technology analysts.
That could add a quarter percentage point to U.S. economic growth in the next three months, says Mark Zandi, chief economist of Moody's Analytics.
The phones went on sale Friday. Many stores were sold out Sunday and were awaiting new shipments.
Piper Jaffray research analyst Gene Munster estimated Apple sold 8 million phones since sales began Friday.
Apple is expected to report official weekend sales figures today.
Wherever sales end up this year, it doesn't mean the iPhone 5 alone will revive the sluggish economy. "Some of the increased spending on iPhones will be offset by spending on other things," Zandi says.
Even with the iPhone's contribution, the U.S. economy is only expected to grow at a weak annual rate of 2% to 2.5% in the October-December period, Zandi says.
JPMorgan Chase estimates a 2% growth rate that should counter the negative effects of this summer's drought on consumer spending growth.
JPMorgan analyst Michael Feroli says his estimate for the iPhone 5's economic impact appears reasonable based on previous iPhone introductions.
When the iPhone 4s went on sale last October, online sales and computer and software sales had their largest monthly increase on record, he points out in his iPhone 5 report.
Feroli calculates last year's iPhone added 0.1 to 0.2 of a percentage point to the economy's growth in last year's fourth quarter.
And the iPhone 5's launch is expected to be much larger.
In addition to iPhone sales, the new product's arrival will also spur demand for new phone cases, chargers and other accessories.
One place the iPhone's impact is clear is in the stock market.
Apple's shares are up 74% this year, after rising $1.39 on Friday to close at $700.09.
Its $278 billion gain in stock market value this year exceeds rival Microsoft's total market value of $261billion.
Apple's gain represents 12% of this year's increase in the Standard & Poor's 500 stock index, said Howard Silverblatt, senior index analyst at S&P/Dow Jones Indices.
Most Popular Stories
- Boehner Lashes Out Against Ted Cruz, Far Right
- Bitcoin or Bad Coin? Warnings Mount Against Virtual Currency
- TFA Recruiting DACA Recipients
- Cheap Gas Drives Down U.S. Wholesale Prices Again
- Expanding Medicaid Creates Jobs: Study
- Robert Levinson Was on CIA Mission
- Producer Price Index Dropped in November
- 'Dreamers' Hope for Permanent Immigration Status
- Beyonce Releases New Album With No Marketing
- Hawaii Official Who Release Obama Certificate Only Victim of Plane Crash