So, which impacted the economy more: everyone watching the British Royal Wedding, or everyone watching Apple’s “Let’s Talk iPhone” event? Both had their benefits, but both saw significant losses to their respective economies due to employees watching the presentations during work. Let’s look a bit deeper and see what the ups and downs were for both events.
The British Royal Wedding took place on Friday, April 29, 2011, actually a declared national holiday. This was not the only holiday, as the wedding took place the Friday after Easter. British employees were given leave on Good Friday, Easter Monday, the Friday for the wedding, and the following Monday on May 2nd. Many workers took vacation or called in sick on the Tuesday – Thursday during the wedding week.
This week and a half long holiday cost businesses in the U.K. billions. It did, however, increase tourism, souvenir sales, and local business sales for the shops that had employees at work. It also did England a favor in PR work, reaching over 2 billion TV viewers.
This past Tuesday, the 4th of October 2011, Apple hosted its “Let’s Talk iPhone” event. This marked the release of the new iPhone that had been hyped since even before its expected release this June. The day wasn’t a national holiday like the wedding, but it may as well have been. This chart shows the impact on the Dow Jones Industrial Average during Apple’s press release. It shows a drop of around 400 points during the presentation (time zones taken into account) with a sharp upturn around 3 pm.
Apple’s stock however was a roller coaster ride all day leading to somewhat of a plummet toward 2 pm EST when the iPhone 4S was announced. Despite this somewhat underwhelming news, people are still excited about it and are likely still going to buy it and Apple’s stock is back on track. This should cause a lot of economic activity focused around Apple and cellular providers.
In summary, the Royal Wedding caused a loss in productivity for most of the country, but increased sales for that time for small businesses in the area, as well as being a great advertisement around the globe for England. The “Let’s Talk iPhone” event caused a smaller loss in productivity and will increase sales for big businesses Apple and the phone companies, as well as anyone who sells the Nano or the iPod Touch. The PR influence for America is not yet known, but will hopefully bring some money to America from sales overseas.
What are your thoughts?