iPhone 5 'not just a phone'

2012-09-15 10:13

Washington - Apple's iPhone 5 is one of the biggest product launches ever in the sector, and may also deliver a well-timed stimulus to the US economy ahead of the presidential election, analysts say.

Apple is expected to sell as many as 10 million of the devices in just the first days of the launch starting 21 September, and upwards of 50 million in the fourth quarter, including a big chunk in the United States.

JP Morgan economist Michael Feroli said he sees the iPhone 5 adding between 0.25 and 0.5 percentage points to US economic activity in the fourth quarter, based on projected US sales of eight million.

Feroli said it was a simple math calculation: if the phones are worth $600, including carrier subsidies, minus $200 for import costs, that would be $3.2bn in net sales, or $12.8bn at an annual rate, boosting gross domestic product (GDP) by 0.33 points.

Cary Leahey, chief US economist at Decision Economics, said the calculation "makes sense."

"It just shows the power of an extremely popular product which is priced very dear," Leahey said.

He said the boost was "noticeable but not earth-shattering."

But with the US economy having expanded at a tepid 1.7% pace in the second quarter, the stimulus will be well-timed.

"The economy absolutely needs it, it could not come at a better time," said Joel Naroff at Naroff Economic Advisors.

"Household incomes are flat, real disposable income is going nowhere. You don't have any source of fuel, so it's got to come from somewhere."

Naroff said that US consumers will likely pull money out of savings for the iPhone and similar devices, and in some cases, it may be simply a matter of pulling the spending forward.

  • chadjason.wilson - 2012-09-15 10:36

    Does the editor for News 24 have an IPhone or Apple shares?

      tuco.angeleyes - 2012-09-15 10:45

      Yes he does. Its clear as day light. I find it strange a country has to rely on a phone to stimulate its economy. Its becoming clear why there was so much hype around the iPhone yet there is no WOW factor why Samsung was charged 1 billion after the lawsuite in US territory

      morgaenart.farto - 2012-09-15 11:17

      Anyone with half a brain and who owns rotten Apple shares would do well to dump them now. Apple is going down but big without iJobs at the helm.

      preshen.govender.90 - 2012-09-15 12:56

      It’s not just a phone it’s a fashion statement

      gerhard.nel - 2012-09-15 14:07

      I read the other day that Apple contributes to 0.5% of the US GDP. They are very important to the US economy and will always be protected.

      omo.naija.750 - 2012-09-15 17:08

      Every tech blog i have visited since the 13th of september 2012 has been talking about the new Iphone5 and to make it worse every single topic on their front page is about the iphone5: How does the iPhone5 fart? ,How does the iPhone5 sing? What does the iPhone5 wear to church? blah blah blah blah......One of the tech blogs i used to have great respect for (CNET) did a versus review a few days ago and in their own words "narrowly" declared the iPhone5 the best phone amongst iPhone5 ,Nokia Lumia 920 and Samsung galaxy s3.How can they declare iPhone5 the winner amongst the three when the Nokia is not even out yet and the Samsung Galaxy S3 CLEARLY beats the iPhone5 in EVERY SINGLE WAY? Stupendously biased reviews like this makes these blogs look like prostitutes who will do anything for a buck.

      omo.naija.750 - 2012-09-15 17:10

      The Iphone5 is SERIOUSLY underwhelming,i mean i will have to be a retard to chunk out that kind of money for a crappy phone that does not special when there are better options out there.The Nokia Lumia 920 that has wireless charging ,NFC ,pure view tech and windows phone 8 beats the iPhone5 with a landslide.That however does not stop itards from going to queue in from of Apple stores like brainwashed lemins. In the Uk ,some sad sods(who seriously need to get laid) are already queuing in front of the Apple store 8 DAYS before the shops start selling the phone?? I mean WTF! It is just a flipping phone not the fountain of youth! If i did not know better ,i will have accused Apple of being a religion/sect and it fans of being worshippers.Well done Apple for running one of the biggest scams in mordern history and being able to retain your brainless followers who are daft enough to keep coming back year after year to buy the same piece of crap from you while paying more.

      omo.naija.750 - 2012-09-15 18:33

      Check out itards :

      sam.goldberg.988 - 2012-09-16 21:32

      Sheesh, omonaija, did someone at Apple sleep with your wife or something? You people realise this is just a phone, right? Some people like Android, some people like Apple, their choices don't affect you do they? You guys are all talking like you're personally and emotionally invested in the success of these companies. " Samsung Galaxy S3 CLEARLY beats the iPhone5 in EVERY SINGLE WAY?" <- I mean that's just a blind, fanatical statement right there.

  • raymond.buis.3 - 2012-09-15 10:54

    It's also a really expensive paper wieght ,and I way for people to know what a sheep you are.

      morgaenart.farto - 2012-09-15 11:18

      Except that old-style paperweights didn't go obsolete after 6 months.

  • harley.quin.334 - 2012-09-15 11:11

    meh...i think i'll stick with my Galaxy S2

  • hendrikvs - 2012-09-15 11:13

    iPhone rocks!

      pawmetmhla.mqadi - 2012-09-15 11:15

      Ur so right Hendrikvs

      basil.jacobs1 - 2012-09-15 11:36

      Apple is the most practical smartphone at the moment with the most complete integrated OS. I own all MAC and everything just works with among the products like family should. I like the Galaxy S3 and had a couple, but I prefer my iPhone 4S loaded with the latest iOS 6.0 GM.

      Tony Lapson - 2012-09-15 12:32

      You've owned "a couple" of galaxy s3's since June? Wow, it sounds like you swim in money. You don't even need to be smart about your spending.

      jpanagidis - 2012-09-15 13:11

      Have to agree, Apple works and works well, just pure quality that other manufacturers are always striving to match. No matter what they try though, they are always behind the 8 ball when it comes to Apple. Apple always get it right. Best operating system, quality applications, beautiful all round complete package.

  • tiaan.truter - 2012-09-15 11:22

    Apple just not a phone - But a complete waste of money

      michael.laski - 2012-09-15 11:38

      until you can afford to own one

  • vloftie - 2012-09-15 11:38

    $ 200.00 import costs - That can not be true...

      Tony Lapson - 2012-09-15 12:24

      Per unit? $200 x 10m = $2 000 000 000?

  • Lifa Bekwa - 2012-09-15 12:25

    Samsung Galaxy S3 wins in the end...

  • Lifa Bekwa - 2012-09-15 12:27

    Apple Inc. they are scammers! costs them USD90 - USD100 to manufacture and ship each device and sell it to you at USD900.

      jpanagidis - 2012-09-15 13:12

      And which manufacturer DOESN'T make a huge mark up on their goods bud?

  • christianfvn - 2012-09-15 13:38

    I still prefer Android. It's for a large part open source and have many community driven versions, while still belonging to the Android ecosystem. And while many people think that means lack of quality or opens up fragmentation, it's quite the opposite. And Android ecosystem is quite agnostic of the platform it runs on. With Apple, you're stuck with Apple hardware and software. Whereas Android, while perceived as Google, is run by a consortium ready to step in if, say, Google should tank. In the coming years, we'll all be forced to choose our ecosystem. I'm already forced to stick with Android because I've purchased a lot of apps for it, and would lose that when I move over. But say Samsung (I have a S2) falls out of the race, I'm not that worried. Apple doesn't have this. Granted, they have massive brand loyalty, and since there is no easy alternative, people will be reluctant to switch. But open markets have always been better for the consumer. Apple is stagnating. The radical company of 5 years ago is gone. And don't let them make you believe otherwise by selling you an iPhone 4S with a bigger screen, basically.

  • Jason - 2012-09-15 14:14

    Have your iphone. Android is infinitely better.

  • shiv179 - 2012-09-15 14:30

    "US consumers will likely pull money out of savings for the iPhone" Apple really does capitalize on the sheer stupidity of Americans!

      dino.martin.549 - 2012-09-15 14:51

      Got to watch this... Americans ;)

      peter.t.viljoen - 2012-09-15 18:13

      Really? A South African calling Americans stupid! That's flipping cheek considering recent events here....

      omo.naija.750 - 2012-09-15 18:19

      @BOB - ROFLMAO ,Geez i can't believe this is the same country i am migrating to next year! Can the Average American be this stupid????

      travis.vermaak - 2012-09-17 16:17

      Americans are struggling with disposable income......But forking for the iPhone5 will make that all better.

  • Lifa Bekwa - 2012-09-15 16:03

    Guys please do check and have your comment about it. Its their first high-end products, tablet and smartphone.

  • jacque.wagner.9 - 2012-09-15 20:41

    I've been using the 4s and switched to the S3 when it was released. First tim ever to use android and must admid that android is mutch bettet or at leadt for me. Many apps on android is free where on iOS you have to buy them.

  • mbonyathi - 2012-09-15 21:15

    for the Iphone users its not too late to load ICS on your handsets maybe then will you experience what us HUMANs feel

  • chaze.damonze - 2012-09-16 02:59

    Phone made of poo

  • mynhardt.johan - 2012-09-16 07:11

    ha, it also seems like iPhone peeps don't read news :-P (well, the lack of any iPhone support in the comments) Hurrah for Android :-D

  • bmaestro - 2012-09-16 19:15

    yes its just a phone not a freakin human being

  • ludlowdj - 2012-09-17 16:07

    It is very disconcerting to have a manufacturer and a government for that matter encouraging people to use their savings to buy what is at best a very limiting device. Simply more proof that the power that be have lost the plot completely

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