Love your tablet? What about your smartphone? You’re certainly not the only one: U.S. consumers love their technology. That’s making technology companies very profitable, as a recent story by USA Today shows. That same story suggests that this love affair continues in 2014, with tech companies continuing to enjoy huge profits.
A positive outlook
According to the USA Today story, in 2014 technology companies listed on the S&P 500 index are predicted to earn net income that is 9.3 percent higher than in 2013. USA Today quotes FactSet, a company that computes Wall Street earnings estimates, in making this prediction. Last year, the tech industry only saw its net income grow by 1.9 percent.
And USA Today expects tech companies to remain extremely profitable in the future. The story says that the tech sector annually ranks as one of the most profitable industries in the United States, something that the newspaper says won’t change in 2014. According to the USA Today story, the tech sector should see a profit margin of 15 percent to 16 percent this year, a healthy figure.
A tech love affair?
This success really should not be surprising. Today’s consumers are obsessed with their tech gadgets. And this has been a long-time trend. Just take a look at how popular tablets and smartphones are. Video-game systems remain hot sellers. And tech companies are evolving and updating their offerings on a near constant basis. Tech is definitely king today.