Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Space Industry and Business News .




TECH SPACE
iPhone 5 not just a phone; it's a stimulus too
by Staff Writers
Washington (AFP) Sept 14, 2012


Swamped Apple pushes back some iPhone 5 orders
New York (AFP) Sept 14, 2012 - With a flood of orders coming for the new iPhone 5, Apple pushed back delivery times for the new device on its website Friday.

Apple's US website said that for those ordering the new smartphone, shipping would be in two weeks, a week later than promised.

The new iPhone may be available at Apple retail outlets and third party sellers starting September 21.

According to specialized websites, Apple exhausted its initial supply within 60 minutes of opening pre-orders on its website.

"One hour after pre-orders went live tonight, Apple.com shifted shipping expectations from one to two weeks due to the overwhelming demand," the website TechCrunch said.

That compared with 22 hours for the iPhone 4S and 20 hours for the iPhone 4, the website said, adding that the deluge of orders caused technical problems for Apple's site and those of some carriers.

"This highlights unprecedented demand for the iPhone 5 and much stronger than the iPhone 4S," said Brian White, analyst at Topeka Capital Markets.

Apple websites in Britain, Canada, France and Germany also indicated shipments of the phones in two to three weeks.

The smartphone is being sold initially in nine countries, and will be in 100 by the end of the year, according to Apple.

Some analysts say Apple could sell 10 million in the opening days and 50 million before the end of 2012.

Apple shares rose 1.2 percent to a new all-time closing high Friday of $691.28, giving the tech firm a market value of $648 billion.

Analyst Stephen Turner at Hilliard Lyons said Apple still has room to grow, with the iPhone, a likely new version of the iPad and other revenue streams.

"The company has over 435 million iTunes accounts. We believe that not only will Apple sell more 'idevices' to these customers and new customers in the future, it will continue to generate significant 'recurring revenue' from iTunes purchases and the App Store," he said in a note to clients.

Apple's iPhone 5 is one of the biggest product launches ever in the sector, and may also deliver a well-timed stimulus to the US economy ahead of the presidential election, analysts say.

Apple is expected to sell as many as 10 million of the devices in just the first days of the launch starting September 21, and upwards of 50 million in the fourth quarter, including a big chunk in the United States.

JP Morgan economist Michael Feroli said he sees the iPhone 5 adding between 0.25 and 0.5 percentage points to US economic activity in the fourth quarter, based on projected US sales of eight million.

Feroli said it was a simple math calculation: if the phones are worth $600, including carrier subsidies, minus $200 for import costs, that would be $3.2 billion in net sales, or $12.8 billion at an annual rate, boosting gross domestic product (GDP) by 0.33 points.

Cary Leahey, chief US economist at Decision Economics, said the calculation "makes sense."

"It just shows the power of an extremely popular product which is priced very dear," Leahey said.

He said the boost was "noticeable but not earth-shattering."

But with the US economy having expanded at a tepid 1.7 percent pace in the second quarter, the stimulus will be well-timed.

"The economy absolutely needs it, it could not come at a better time," said Joel Naroff at Naroff Economic Advisors.

"Household incomes are flat, real disposable income is going nowhere. You don't have any source of fuel, so it's got to come from somewhere."

Naroff said that US consumers will likely pull money out of savings for the iPhone and similar devices, and in some cases, it may be simply a matter of pulling the spending forward.

"The net impact on the economy is not clear," he said.

Paul Krugman, a Princeton University economist who blogs for The New York Times, said the stimulus effect underlines how the US economy is dependent on consumer spending.

"To believe that more spending will provide an economic boost, you have to believe -- as you should -- that demand, not supply, is what's holding the economy back," Krugman wrote.

"We don't have high unemployment because Americans don't want to work, and we don't have high unemployment because workers lack the right skills.

"Instead, willing and able workers can't find jobs because employers can't sell enough to justify hiring them. And the solution is to find some way to increase overall spending so that the nation can get back to work."

Krugman added that "over time, there will be more equipment that needs replacing, more iPhone-like innovations that boost spending, and, in the long run, we will exit this economic trap."

Even before the iPhone 5, Apple cited a study showing it has created or supported more than 500,000 US jobs, including 47,000 at Apple alone and 200,000 in the so-called "app economy."

Apple's launch comes amid a spate of new product releases expected to woo US consumers in the pre-holiday season.

The Consumer Electronics Association projects record sales of electronics of $206 billion this year, the first time above the $200 billion mark.

Along with phone launches, Microsoft is producing its own Surface tablet computer, Google has introduced a tablet and smartphone and Amazon has upgraded its Kindle Fire tablets.

And Apple is expected to launch a "mini iPad" in the coming weeks to cement its position in the tablet market.

All this has the potential to boost share prices, consumer spending and the so-called supply chain involving component makers. Apple's record stock price surge has helped push the Nasdaq stock exchange to its highest level since 2000, after the dotcom collapse.

Morgan Stanley analyst Katy Huberty said Apple may ship between 48 million and 53 million iPhones in the fourth quarter and "up to 266 million" in 2013.

Contrary to popular belief, the largest portion of the proceeds from iPhone sales flow to the United States, not China, said Jason Dedrick, professor of information studies at Syracuse University.

"Virtually none of the profits go to China," he added.

A 2011 study by Dedrick with researchers Kenneth Kraemer and Greg Linden concluded that 58 percent of the iPhone cost went to Apple profits, with materials representing some 22 percent and labor costs in China just 1.8 percent.

"We estimated about $10 in wages for each iPhone going to workers in China for the iPhone or iPad," he said.

Even with the stimulus, most economists say the iPhone and other devices probably won't make a difference in the November election.

Leahey said the introduction is too late to have an impact on jobs before November, and that more important is "the public perception of the labor market," which is unlikely to change in the next two months.

.


Related Links
Space Technology News - Applications and Research






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





TECH SPACE
Facebook shakes up engineering teams in mobile move
Menlo Park, California (AFP) Sept 13, 2012
Facebook on Thursday said that it has shaken up its engineering teams to make targeting smartphones a top priority at the world's leading social network. "We have really just re-organized the company to build faster on mobile," Facebook director of product management Peter Deng said during a briefing with reporters at the company's campus in Menlo Park, California. "In the past six month ... read more


TECH SPACE
Nano-velcro clasps heavy metal molecules in its grips

HYLAS 2 Communications Satellite Completes In-Orbit Testing

U.S. Air Force Chooses Northrop Grumman to Demonstrate Next-Generation Air Defense Radar System

iPhone 5 not just a phone; it's a stimulus too

TECH SPACE
SES Government Solutions Awarded Custom Satellite Solutions Contract in the US

Boeing Chosen for US Government's COMSATCOM Services Acquisition Program

Intelsat General Awarded Contract in US Government's New Custom SATCOM Solutions Program

Smartphone App Can Track Objects On the Battlefield as Well as On the Sports Field

TECH SPACE
ISRO's 100th space mission blasts off, PM witnesses historic event

SES signs three satellite launches with SpaceX

S. Korea to make third rocket launch bid in October

Arianespace concurrently manages six missions with Ariane 5 and Soyuz

TECH SPACE
Countdown: a month to go to Galileo's next launch

Monitech Announces Zero-Installation Tracking System for Automotive Industry

Lockheed Martin and Raytheon Complete First Launch Exercise for Next Generation GPS Satellites

Northrop Grumman to Supply Bridge Navigation Systems for Swire Group's Dry Cargo Ships

TECH SPACE
DLR and NASA announce partnership in aeronautics research

Sikorsky explores broader Polish network

Chile in talks to buy Dutch Cougar copters

Northrop Grumman to Supply Navigation System for Embraer's New KC-390 Military Aircraft

TECH SPACE
Needle beam could eliminate signal loss in on-chip optics

Samsung starts to build $7bn chip plant in China

Towards computing with water droplets - superhydrophobic droplet logic

More than 70 percent of electronic waste management is uncontrolled

TECH SPACE
More satellite launches planned for upgrading maritime monitoring

Astrium installs new terminal in Mexico to receive SPOT 6 and SPOT 7 imagery

Suomi NPP Captures Smoke Plume Images from Russian and African Fires

Remote Sensing Satellite Sends First Earth Imagery

TECH SPACE
Measuring mercury levels: Nano-velcro detects water-borne toxic metals

Indonesian lives risked on 'world's most polluted' river

Oil spill ship's officers deported from New Zealand

Chemical use inflicts mounting bill on poor countries: UN




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement