Tech Industry Trends for 2013: A Look Ahead

Strategic Insights -

As the tech industry prepares for the new year, once-dominant players are facing a make-or-break situation, while emerging trends such as cloud computing, mobile payments, and 4G wireless expansion are expected to shape the sector. In smartphones, Nokia and Research In Motion are struggling to regain their footing in a market dominated by Apple's iPhone and Samsung's Android phones. Meanwhile, Microsoft, Dell, and Hewlett-Packard are trying to adapt to the shift to mobile and cloud computing, while consumer electronics giants Sony and Panasonic are fighting to stay profitable in a low-margin market.

Key Takeaways:

  • IT spending is expected to rise 2.5% to $2.68 trillion worldwide in 2013, according to Gartner, with the biggest growth drivers being smart mobile devices and cloud services.
  • The smartphone industry will experience a slowdown in profits as high-end smartphone sales slow significantly, with Pacific Crest Securities predicting a decline in growth from nearly 40% in 2012 to single digits in 2013.
  • The living-room battle is intensifying, with over-the-top TV services from Netflix, Amazon, Apple, Microsoft, and others competing with traditional cable, satellite, and telco providers for the attention of digital-savvy consumers.
  • Mobile payments are on the rise, led by credit-card-swipe gadgets and services from Square and eBay's PayPal, with credit card companies MasterCard and Visa taking on new entrants like Apple and Google.
  • Superfast 4G data services will go mainstream in 2013, with national 4G LTE services from AT&T, Sprint Nextel, and T-Mobile USA expanding across the US, offering faster speeds and more choices for consumers.
  • Emerging trends such as cloud computing, Big Data analytics, mobile payment technologies, over-the-top TV, tablets, and 4G wireless expansion will revolutionize the tech industry, driving growth and innovation.
  • Tech leaders may have to adapt to changing market conditions, with companies like Best Buy shutting underperforming stores and reorganizing to stay relevant in a changing retail landscape.

Statistics:

  • IT spending is expected to rise 2.5% to $2.68 trillion worldwide in 2013, according to Gartner.
  • Smart mobile devices, such as smartphones and tablets, will generate 57% of the industry's overall growth in 2013, with sales up almost 20%.
  • The smartphone industry will experience a slowdown in profits, with Pacific Crest Securities predicting a decline in growth from nearly 40% in 2012 to single digits in 2013.
  • Over-the-top TV services will take a bigger share of the market, with Netflix and Amazon leading the charge.
  • Mobile payment options will expand in 2013, with credit card companies MasterCard and Visa taking on new entrants like Apple and Google.
  • Superfast 4G data services will go mainstream in 2013, with national 4G LTE services from AT&T, Sprint Nextel, and T-Mobile USA expanding across the US.

Sources:

  • Gartner, "IT Spending Forecast, 2013" (no date)
  • Pacific Crest Securities, "Smartphone Industry: A Tale of Two Worlds" (Dec. 20, 2012)
  • Cowen and Co., "Over-the-Top TV: Chasing the Living Room" (Dec. 5, 2012)
  • IDC, "Worldwide Quarterly Tablet and eReader Tracker, Q3 2012" (no date)
  • Market research firms, including Gartner and IDC (no specific sources cited)