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)

Questions or comments? Please feel free to contact the editors


Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Ceconomy continues growth in transitional year

26/10/2017

Ceconomy, a former part of German Metro Group, achieved a 4.6 % fourth quarter turnover increase to 5.264 billion euro. Media Market’s parent company mainly made strides online.

Fnac Darty grew 6 % in third quarter

20/10/2017

Fnac Darty has raised its third quarter turnover by 6 % to 1.792 billion euro, with growth in the Benelux as well. The company also revealed the integration of both companies is ahead of schedule.

Samsung CEO resigns despite record profit

13/10/2017

South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Fnac-Darty introduces new board

12/10/2017

A little more than a year after Fnac and Darty merged and several months after CEO Alexandre Bompard suddenly moved to Carrefour, the French entertainment and electronics group Fnac-Darty introduced its new board.

Twelfth straight quarter of weaker computer sales

12/10/2017

Desktop computer sales have slumped once more in the third quarter, down 3.6 %. It is the third straight year of dwindling sales, according to research firm Gartner.

Back to top