Global spending on technology is expected to drop by 1% to $1.06 trillion in 2014, according to a new report from the Consumer Electronics Association.
However, consumer spending on smartphones and tablets is still said to account for about 43 cents of each dollar spent on technology during the year.
Steve Koenig, the director of industry analysis of the Consumer Electronics Association, told the Associated Press despite the number of smartphones sold increasing to 1.21 billion from 1.01 billion, the average price of smartphones is anticipated to drop this year.
"These lower-end devices are what’s required to penetrate most deeply into these emerging markets," Koenig said.
The report also projects that smartphones and tablets would be the chief drivers of technology spending as a lower selling price offsets unit growth in markets like China.
According to Consumer Electronics Association chief economist Shawn DuBravac, smartwatch sales are projected to reach 1.5 million units across the globe in 2014.
"This is a very nascent market," DuBravac said.
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"We’re still looking for that killer application for that particular device."
Another report from Forrester predicts the global tech market will struggle to achieve a 6% increase in 2014, even though there are better prospects for 2015.
