China bypasses US in consumer tech spending

China — although officially the term is still ‘ Developing Asia’ — surpassed the US in spending on consumer technology in 2013, according to Steve Koenig, Director, Industry Analysis at CEA. China is expected to increase its lead over the US this year.

Koenig gave a presentation on global state of consumer electronics on Sunday in Las Vegas, where the International CES, the world’s largest consumer electronic show, will open today.

In terms of spending, 2013 wasn’t a stellar year, with global spending on consumer technology up about 3 per cent to an estimated $ 1.068 trillion ( Dh3.92 trillion), driven mainly by smartphone and tablet sales. A year- end push from new gaming consoles entering the market also helped, but 2014 is predicated to be worse, with revenues falling about 1 per cent to $ 1.055 trillion; $ 525 billion of that will come from developing markets.

Growth from developing markets, however, was up an estimated 9 per cent in 2013 and is still expected to grow two per cent in 2014. Emerging Asia, again, read “China”, grew 15 per cent in 2013, although that will fall to 1 per cent in 2014, although even that will still represent 27 per cent of global revenues from consumer electronics. “The Chinese consumer is very enthusiastic about technology,” Koenig said, with 90 per cent saying that consumer technology provides them with tools they need to succeed in life.

The Middle East and Africa grew an estimated 6 per cent in 2013, a figure that will likely to repeat in 2014.