Not only will the upcoming iPhone 5 rake in tons of cash for Apple, it could also boost the overall U.S. economy. At least that’s according to J.P. Morgan’s chief economist, Michael Feroli.
In a note to clients on Monday, Feroli said sales of the smartphone could add between 0.25% to 0.5% to fourth quarter annualized growth in the U.S., Reuters reported.
“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,” he wrote.
Analysts at the financial services firm project that Apple will sell 8 million iPhone 5s in the fourth quarter, each with an expected sales price of around $600, according to Reuters.
With $200 in discounted import component costs, the U.S. government can include $400 per phone into its GDP for the fourth quarter, the agency said.
Clear skies over Asia’s new foreign investment landscape?
Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.(more…)
How higher US bond yields will impact Asia Pacific bonds
As financial markets started pricing in stronger US economic growth and inflation because of Joe Biden’s stimulus plan, US bond yields have risen, causing ripple effects across the world, including in APAC.
Following the rise in US bond yields in response to Joe Biden’s stimulus plan and amid higher inflation in some economies, Asia Pacific bond yields have risen significantly as well, especially in Southeast Asia, India, Hong Kong, and Australia. However, Northeast Asian bond yields have risen little.(more…)
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