October 8th, 2012
Chief economist at JPMorgan reported that the new iPhone should increase the GDP anywhere between a quarter of a point and half a point on an annual basis. It was a heavy statement for him to make because they can’t really accurately predict displaced spending vs. new spending that otherwise would not occur. What this tells us is that what the government does isn’t as important as what the rest of us do on our own. In comparison, Ben Bernanke and the Federal Reserve just agreed to purchase up to $40 billion a month’s worth of mortgage bonds and securities totaling up to half a trillion dollars a year. So it’s a big deal that the iPhone will be more of an economy than that on our economy. The iPhone is predicted to add 8 million units in the 4th quarter (or more) which will add $3.2 billion to the Q4 GDP or $12.8 billion annually. If that happens, then it would boost the annualized GDP growth in Q4 alone by about 0.33%.
This has a timely effect on politics because as the economy gets better (thanks to Apple), people are consequentially happier, spending money, feeling good, and Obama reaps the benefits. This is ironic if Apple played a part in re-electing Barack Obama because it was Steve Jobs, the late Apple CEO, who told Obama that he was heading to a one-term presidency because he was not business-friendly enough.
It’s expected to be the greatest selling gadget of all time, right behind its nearly identical iPhone 4S and could be rolling in as much as $36 billion in new sales according to Bloomberg analysis. But people will be buying it for no real reason, other then it’s the new iPhone. To understand some sales numbers in comparing the two phones, Samsung said global sales of their device reached 20 million units in its first 100 days; whereas analysts expect Apple to sell 10 million iPhone 5 units or more in the first 14 days after the launch, ending the company’s fourth fiscal quarter. Apple totals in the December period are expected to be somewhere in the 45-50 million rage as well as strong demand into 2013.
The importance of the iPhone in the economy goes to show how important mobile devices have become in the day to day lives of Americans. So now the requirements for organizations and companies to have a mobile ready presence are increasingly important. It’s not necessarily about being innovative but more of making sure consumers can have the right experience of your brand.
The new iPhone and iPad touch both now boast a four inch retina display but the new ones now have a pixel resolution of 1136-by-640 at 326 ppi which replaces the 960-by-640 pixels – this should create fewer memory issues and fewer graphical glitches because there’s a lot more space. All companies, especially those building e-commerce platforms, will have to incorporate responsive design into their websites to ensure the highest customer satisfaction.
Responsive design is an approach to web design in which a site is crafted to provide an optimal viewing experience so that there’s easy reading and navigation with a minimum of resizing, panning, and scrolling across a wide range of monitors. It’s listed as # 2 top web design trends in 2012 and the expected trend in 2013 is that most e-commerce retailers will be using responsive web design so people can buy from any device. It indicates that a website is crafted to use CSS 3 media. It’s really challenging for web designers and developers to create applications that will perform well in all of the environments. Basically, these websites are still running the same code, just manipulating the application at the interface or UI layer, so you don’t have to re-code.
This makes it a lot easier, faster, and quicker to accomplish as well as a huge payoff in terms of usability, interactivity, and time spent on sites and customer satisfaction in general. Basically, responsive design is being pushed to popularity through the release of the iPhone 5 and it’s slightly longer screen. Google also released a reminder from its Mobile Ads Blog that two thirds of consumers are more likely to buy from a mobile-friendly site and a little less than two thirds say they’ll abandon a mobile site if they don’t see what they want right away – so any e-commerce company better integrate responsive design to their websites if they haven’t already!