Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price Essay

Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price - Essay ExampleMoreover, the club is in charge for the manufacturing of iTunes Media Browser, iLife and iWork creativeness and cropion suites (Apple Computer Inc. Web). The company is the third largest mobile phone maker in the world after Samsung and Nokia. The company has also been named to be the most admire company in the United States in 2008 and the most admired company in the world from 2008 to 2012. Apple Inc. is the largest openly traded company in the world by market capitalization. The company has an estimated value of $626 billion listed in the New York Stock Exchange. This means that market capitalization of the company is larger than that of its competitors, Google and Microsoft put together. The companys worldwide annual revenue amounted to $65 billion in 2010, which have grown to $156 billion in 2012 (Foremski 1). When it was first launched, the iPhone was comprehensively respected that it was dub bed the Jesus Phone. However, five years later, its impact is so huge that its latest recapitulation possibly will accomplish the astounding achievement of redeeming the US economy. The tremendous return of its iPhone, iPod Touch and iPad products have brought about the large growth of the company. These products introduced innovations in mobile phones, portable music players, and personal computers respectively. ... According to economist Michael Feroli of J.P. Morgan consultants, the total sale of iPhone 5 may boost the growth of the economy of the US, gross domestic product, by between a quarter and half a percentage point in the last quarter of 2012. This represents a 0.33% of the entire US economy. Economist Michael Feroli of J.P. Morgan consultants notes that if the company sells more than 8 million units of the iPhone 5 at a cost of $600 in three months, the total growth of gross domestic product per a unit of phone will be $400. However, $200 dollars of the total amount is interpreted towards import costs. This figure will translate to $3.2 billion in the last quarter of the year and a total of $12.8 billion for the entire year (Kehoe 2). being the most admired and accomplished phone maker in the world, iPhone creates a huge demand from it admirers for its products. The huge demand for its products in turn exceeds the supply that the company can supply to its consumers at a time. This effect creates more speculation of improved performance in the companys shares. The US economy is by and large dependent on the way in which the consumers spend. The company has created employment opportunities for more than 500,000 people in the country. This figure includes 47,000 of employees who work at apple and 200, 000 people who cuss on the apple economy. The sale of apples products has the ability to increase share prices, customer expenditure, and the supply chain that involves component makers. The expected rick of apples product creates a market surge, wh ich has a huge effect on both domestic and foreign market. The market surge in turn shifts the stock prices upwards. For instance, the release of the iPhone 5 caused the stock price of Apple company