All eyes will be trained on Apple Inc.(NASDAQ:AAPL) this week, as it is set to unveil its new iPhone 5 on Wednesday, which has been touted as the next Big Bang so far as the tech world is concerned.
Investment bank JPMorgan has said that the new phone would not only boost the company's bottom line but also that o the U.S. economy.
In a note to clients J P Morgan's chief economist, Michael Feroli said that the new iPhone could add between a quarter and a half percentage points to the fourth quarter annualised growth in the U.S.
So it in the interests of the U.S. economy that Apple's iPhones should sell well.
"Calculated using the so-called retail control method, sales of iPhone 5 could boost annualized GDP growth by $3.2 billion, or $12.8 billion at an annual rate," Feroli wrote. That 0.33 percentage-point boost, he added, "would limit the downside risk to our Q4 GDP growth protection, which remains 2.0 percent."
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The investment bank's analysts tracking Apple expect the company to sell around 8 million units of the new phone in the fourth quarter. The retail price of the new phones is expected to be at $600.
Feroli said the estimate of between a quarter to a half point of annualized GDP "seems fairly large, and for that reason should be treated sceptically." But, he added, "We think the recent evidence is consistent with this projection."
He pointed out that when the last iPhone was launched in October 2011, sales significantly outperformed expectations.
"Given the iPhone 5 launches is expected to be much larger, we think the estimate mentioned ... is reasonable," Feroli wrote.