Apple’s phone worth $3 billion to economy

Apple fans who buy the new iPhone will help the U.S. economy grow by a third of a percentage point, possibly more, in the final quarter of the year. That fraction of a point is worth $3.2 billion, according to an estimate from JP Morgan.

To put the expected growth in context, the U.S. Gross Domestic Product grew 1.7 percent from the first quarter to the second quarter of 2012, so 0.33 percent from one company alone is impressive.

In his report, “Can one little phone impact GDP?”, Michael Feroli figures that the new iPhone 5 will sell for $600 per unit. If each phone contains about $200 in imported parts, then each iPhone sale adds about $400 to GDP. (Imports get subtracted from GDP calculations.)

If Apple sells eight million iPhones, then that’s a $3.2 billion boost to the economy right there, increasing fourth-quarter growth by 0.33 percentage points.

Apple is the most valuable company in the country, and it’s expected to launch its latest smartphone tomorrow. Most techies assume it’ll be the iPhone 5. I’ve been following all the leaks about what the next iPhone might feature, because I’ll get one.

Apple’s iPhone 5 will be the first smartphone with a larger display size than 3.5 inches. With the new iPhone 5 screen being 4 inches this will also provide a new resolution. To get really geeky, the new phone will be 640 by 1136 pixels, making a fifth icon row on the home screen of the iPhone very likely.

Larger screen means a new design for the phone, slightly longer and thinner than the current iPhone. Does this mean clothing designers will alter pocket sizes?

More importantly, iPhone 5 is expected to have a more powerful processor, improved graphics chip and better cameras. Apple has reportedly equipped the iPhone 5 back with a 12 megapixel camera with a Sony sensor installed. It is not known if the front camera has been improved.

The new dock connector has brought a lot of speculation, because this will probably be equipped with 9 pins instead of the previously standard 30 pins. Get ready to buy all new charger accessories, and help the U.S. economy grow.

By LINDA THOMAS

Apple photo