According to US-based Consumer Electronics Association (CEA), the global IT spending will decline by one per cent in 2014 as lower prices for smartphones and tablets is likely to offset increased consumer demand.
IT spending in developing countries is expected to decline by eight per cent in comparison to a decline of 11 per cent in 2012. In comparison, Western Europe will witness a decline of 6 per cent in the total IT spending in 2014 vis-?-vis a reported decline of 3 per cent in 2013. It spending in US will also decline by one per cent.
CEA states that global IT industry will need a major technology revolution to bring back growth in the sector. Despite overall decline in IT spending, a few regions such as the Middle East and Africa will witness growth in IT spending. The association forecasts that emerging markets will achieve similar growth in IT spending as witnessed by developing countries in 2014. In fact, in 2014, Emerging Asia will outspend North America with estimated IT sales in the former to be $286 billion as compared to $254 billion in the latter.
According to CEA, lower priced smartphones and tablets will be the two key drivers contributing to higher IT spending in emerging markets. Tablets and smartphone sales in emerging markets will account for 42 per cent and 72 per cent of the global tablet and smartphone sales in 2014. Further, the average price of a smartphone in 2014 will be $297 as compared to $345 in 2013 and $444 in 2010.
