Clean. Simple. 100% Finance.

The trillion dollar phone – iPhone 5

In Finance, Technology on September 13, 2012 at 11:58 am

I blogged about Samsung Galaxy S 3 couple of months back and several people wrote back to me with interesting experiences.

I was contemplating of not writing about iPhone 5, since this blog www.finguru.org is about finance not about technology. Ahhh!!! my itch to write about iPhone 5 took-over my right side brain :).

Apple started its conference 6 pm UK time on 12th September 2012 and iPhone was revealed in minutes. My husband has taken the kids for swimming at the local swimming club. Guess what !! he called me around 6.30 and said …… ‘hey dear, do you know what iPhone 5 is here ….’. I said what about the swimming and kids. To my surprise he told me kids are in the pool and he is sitting next to the pool reading live twitter feed on the Apple event (of-course he skipped his swimming). That time I realized, technology craze has taken over every educated men (& women) in western (& eastern) world. By the time I am finishing this blog, the blogosphere is filled with thousands of blog about iPhone and millions of them are underway.

The question is –  What is the financial implication of iPhone in the world? In a recent research note JP Morgan said the new iPhone could add upto half a percentage point towards US GDP annualized growth (US 0.5 % GDP annualized growth = 3.2 billion dollars), which is twice of the total GDP of Bhutan or four times the annual GDP of Somalia. In layman terms, Apple can take over the economies of Bhutan and Somalia by just selling iPhone 5 in one quarter in United States.

The another important growth area would be semiconductor market. RBC Capital market estimates the total revenue of 13.2 billion dollars in 2013 (i.e 4.4% of total semiconductor sales) coming from iPhone. Not to mention the big jump in revenue expected by the mobile companies by introducing 4G network. The overall financial impact of iPhone launch can very well cross $ 100 billion in 2013.

What’s in it for Apple ….. be ready to see the world first company touching 1 trillion dollar market capitalization.

I love Apple more than Samsung because the impact it creates on the financial market and economy of the world, this kind of influence is never seen from any other product or by any other company in corporate history of the world.

The hype, the show and the finally the King of smart phones – The iPhone 5 – The Trillion Dollar Phone.

Comments welcome.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: