2014 will see a $13 Billion drop in Technology spending
At the annual Consumer Electronics Show, the trade group that organizes the annual event indicated that 2013 will see a drop in spending on technology products. According to Steve Koenig, the director of industry analysis at the Consumer Electronics Association, there will be a significant drop in 2014 to $1.06 trillion, which is a reflection of a $13 Billion drop from last year. While Steve Koenig presented his research, he indicated that in 2013, there was $1.07 trillion total spending on technology products by consumers, an improvement from what was posted in 2012.
Some of the reasons given for the expected drop in 2014 include the assumption that most people who can afford a high-end smartphone already have one and will therefore not be inclined to buy another device this year. To curb the speculated drop, Steve advised that manufacturers should probably reduce the prices on gadgets to attract people from emerging markets who had not bought the high-end gadgets on claims that they were expensive. Also, as the focus shifts to wearable devices like the Galaxy Gear and Google Glass, focus should be directed towards developing sound wearable gadgets in 2014 as compared to mobile devices.