Technology turnover will drop in 2014 because of lower pricing | RetailDetail

Technology turnover will drop in 2014 because of lower pricing

Technology turnover will drop in 2014 because of lower pricing

Technological products like computers, televisions, smartphones and tablets will cost less this year, which means the worldwide technology spend will drop – for the first time in a long while.

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)

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