Technology turnover will drop in 2014 because of lower pricing

Mainly a price drop

The 2013 turnover of technological products reached a peak, with 1,068
billion dollars (785 billion euro) – 3 % higher than in 2012. The American
Consumer Electronics Association (CEA) and research firm GfK expect 2014 to finish 1 % lower, at 1,055
billion dollars (776 billion euro).

That will mainly be because of lower prices, despite the rise in items
sold: tablet sales should increase from 242 million to 340 million tablets in 2014, while smartphones should an increase from 1 billion to 1.24 billion. These increases are countered by a
strong drop in prices. The average smartphone price has already dropped
from 325 euro in 2010 to 250 euro in 2014, but that should persist into 2014,
leading to an average price of just below 220 euro.

The increased demand for cheaper versions in the upcoming Asian countries has led to the lower
prices. The area has surpassed North America as the world’s most important
consumer of technological products. Asia’s growth countries
have spent 207 billion euro on technological stuff last year, compared to 187
billion euro for North America.

(Translated by Gary Peeters)