Whether looking at the expenditure method or income method of GDP, we can see that GDP consists of all the domestic good produced and consumed by a country in a given period of time. Typically, per year we see an increase in the economy, as measured by GDP of about 2.5%.
Upon thinking about GDP, and all the various components it encompasses, I began to wonder if it was possible for one specific item or product to profoundly impact GDP in a specific month or quarter. Being that I was sitting on my MacBook, I thought that it was likely an apple product could. So, I began to look into the most commonly purchased apply product, the iPhone.
Turns out that in the fourth quarter of 2014, with the release of the iPhone6, apple sold 39.2 million phones, surpassing all other competitors and marking its highest earned revenue in a quarter yet (see figure). Could such large sales of just one company, lead by the release of a new product, impact the national GDP? Turns out, it can! Experts estimate that the release could have potential impacts on fourth quarter national GDP of about .25% to .5%. This is an outstanding figure when you recognize average annual growth is 2.5% total. Interesting that we live in a society today that invests so much of their national consumption in a cell phone but has trouble providing adolescent students with proper textbooks.