Business Professor Comments on New iPhone's Possible Effect on Economy
September 24, 2012
With the arrival of iPhone 5 and its record-breaking sales, experts are saying it could be a sign of recovery for the economy.
Before lines to purchase the phone had even formed, pre-orders topped two million within the first 24 hours, according to Apple. It was projected that 10 million phones could be sold by Monday, September 24.
"I would say it's good news," said Eric Hake, associate professor of economics at Catawba College.
Hake said if sales continue on this path, it could pump $3 billion into the economy by the end of the year. But the question remains whether it's new spending.
"They are probably also going to be saying, 'well we're cutting back on something else,' at least for a couple months," said Hake.
Hake said the biggest impact will be seen long term, with consumers spending more each month on their bills and new accessories. And the enthusiasm is clear, with consumers already thinking about the next iPhone. Read more...