In a note to clients Monday, titled "Can one little phone impact GDP?," Mr. Feroli walks through the math: J.P. Morgan's equity analysts expect Apple to sell about eight million new iPhone units in the final three months of 2012.
If the phone sells for around $600, with about $200 of it counted as imported components, then $400 per phone would add to the government's measure of gross domestic product, the total value of the economy's output.
Even though consumers may not pay that much for the phone, because of subsidies from wireless carriers, Mr. Feroli explains that companies often report phone sales based on the price of the stand-alone product.
The bottom line: The new iPhone sales could boost GDP by $3.2 billion in the fourth quarter, or $12.8 billion at an annual rate. That is an increase of 0.33 percentage point in the annualized rate of GDP growth. It could be even higher, he says. Even a third of a percentage point would limit the risk the economy would grow more slowly than J.P. Morgan's fourth-quarter growth projection of 2%.
And This from their 10K :
Substantially all of the Company’s manufacturing is performed in whole or in part by a few outsourcing partners primarily located in Asia. The Company has also outsourced much of its transportation and logistics management.
Just curious iPhone manufacture and content is predominately Asian
mostly Samsung and other Asian suppliers maybe a TI or broad com chip in there probably made in TSMC fabs over there as well. price avg $600.00 mostly carrier subsidized how can 2/3 of it be a domestic product? There is nothing domestic about a phone or computer manufactured in China ! A little manipulation going on here to inflate the GDP quite obviously .
Not surprising in an election year .