iPhone to Save the Day — and the Economy?
Could the iPhone save the economy?
JP Morgan’s Chief Economist Keith Fitzgerald says that sales of the new iPhone could increase America’s economic production by as much as a half percent. According to the report — the iPhone could increase GDP 3.2 billion in the current quarter — and nearly 13 billion over 12 months.
Such results would be significant for America’s recovery. But does Apple really have the ability to spark a full economic recovery?
“I don’t know whether or not the economy is bad that something as innocuous as a cell phone is going to make that big a pop — or we’ve become so dependent on technology that that much money is going to pour into it. What happened to airplanes, cars and houses — all these other things we use to depend on?”
Either way — it’s not just Apple that could profit. Carriers like AT&T are also expected to cash in while phone companies are expected to subsidize the cost — new data plans could end up bringing in billions in profits.
According to the Wall Street Journal in the second quarter carriers’ data revenue came in at more than $17 billion.
By FOX’s Tracy Byrnes