CEA Sees Decline in Consumer Electronic Spending for 2014
After a three percent rise in spending on consumer electronics to $1.068 trillion in 2013, Steve Koenig, CEA’s Director of Industry Analysis, predicted at the 2014 International CES show in Las Vegas that spending would decline to $1.055 trillion, or about one percent, in 2014.
Smart phones and tablets drove growth in 2013 as other electronic sectors, such as computers, printers, audio, and video all declined. In 2014, smart phones and tablets will still be the major opportunity, but growth will primarily be in the emerging markets, such as Emerging Asian countries, Africa, and the Middle East, where the emphasis will be on lower cost, basic units. Developed regions, such as North America, Western Europe, developed Asia (Japan, South Korea, and Australia), the regions that typically buy the more robust devices, will all decline due to maturity.
Tablets and smart phones are following the trends of other technology segments and will force vendors to put more innovation into the more price competitive products. This could be both good and bad news for printer and supplies companies. Clearly, it will put printer companies under more pressure to develop different solutions than are currently used in the developed markets, but as the emerging markets begin to use their smart phones and tablets as their primary IT devices they will also need output solutions for applications that require printing. Print vendors that can create cost-effective and easy-to-use solutions that address emerging market users’ requirements will have a distinct advantage.