Illustration: Lu Ting/GT
Although 2013 was an eventful one in many ways for the global technology industry, in terms of overall sales it was flat.
However, according to at least two recent research reports, sales are set to pick up this year. While their divergence in growth predictions indicates just how uncertain the macro-climate remains, there seems to be a consensus that there is enough new technology, new markets and recovery momentum in the global economy for 2014 to be a turnaround year in terms of sales.
Figures released recently by research firm Gartner predicted that worldwide IT spending will increase by 3.1 percent in 2014 to reach $3.8 trillion. This is compared with growth of just 0.4 percent in 2013. The report said enterprise software will see the strongest growth at 6.8 percent to $320 billion, with slowest growth in telecom services, which will still maintain by far the biggest in terms of overall spending at $1.65 billion. Devices - which include phones, tablets and computers - will see spending growth of 4.3 percent to reach $697 billion.
The figures, of course, shouldn't be taken as definitive. Gartner was way off with its 2013 growth predictions - it said 4.2 percent. Another research house, Forrester, differed in its predictions for the year, expecting growth of 6.2 percent to $2.2 trillion, excluding telecom services.
A recovery in IT sales is good news for the semiconductor sector, whose products are used across the IT industry, and a number of observers are predicting a strong resurgence.
Smartphones are also set to see strong growth, thanks in large part to continuing growth in China and India, which together will account for 400 million new smartphone users, according to figures from Mediacells, and further opening up the battleground in the budget smartphone space.
Samsung, the world's largest smartphone maker, has sales growth targets of between 15 percent and 20 percent, according to reports based on inside sources. While this is apparently lower than the company had previously projected, it is still in line with analyst estimates for overall industry growth in 2014 of around 18 percent. Samsung will also be launching new high-end models, and pushing into the mid-range market. At the same time, Microsoft will be vying for market share with its newly acquired Nokia handset business in order to promote its proprietary mobile operating system.
Such confidence is also reflected in Chinese smartphone manufacturer Xiaomi's announcement that it expects to shift 40 million units in 2014 - double what it sold in 2013 and putting it among the world's top 10 phone makers.
PC sales fell by a record 10 percent in 2013, according to Gartner. However, it looks like tablet sales will continue their strong performance, and in unit terms could account for around the same number as desktop and laptop PCs combined, according to figures from Canalys. At the same time, as the economy recovers, companies and governments may well loosen their IT buying policies, begin upgrading hardware and software and increase spending on cloud data services.
The launch of new-generation consoles at the end of 2013 by Sony and Microsoft will also help boost game and hardware sales.
In TVs, not many industry watchers expect a huge turnaround in the sales stagnation seen through 2013. However, new initiatives such as smart TVs, plus a sharp fall in prices of ultra-high definition screens, could help boost the sector. NPD DisplaySearch said it expects HDTV shipments, which were at 1.9 million in 2013, to surge to 12.7 million in 2014.
On top of these factors are new areas that will, if not reach their full potential in 2014, at least start having an appreciable effect. These include the rollout of 4G mobile networks, which will require huge purchases of new network equipment by telecom networks. Prices of 3D printers for use in manufacturing and in the home are also likely to start coming down, opening up a new sales area. And while the rise of the cyborgs is still likely a long way off, wearable technology from simple fitness monitors up to glasses offering augmented reality will likely be an increasingly common sight.
So while 2014 may not see huge profits in the technology sector, it could be the year that the industry finally regains its traction and builds up momentum for a strong 2015.
The author is a freelance writer. adam.skuse@yahoo.combizopinion@globaltimes.com.cn