Love your tablet? What about your smartphone? If you do you're not the only one: U.S. consumers love their technology. That's helping to make technology companies extremely profitable, as a recent story by USA Today illustrates. That same story indicates that this love affair continues in 2014, with tech companies continuing to enjoy huge profits.
A money-making industry
According to USA Today’s story, 2014 really should be an excellent year for tech companies. The paper, using data from FactSet, a firm that compiles Wall Street earnings reports, says that these companies should see their net incomes rise by about 9.3 percent in 2014. That’s much better than in 2013, when tech firms only saw their net incomes rise by an average of 1.9 percent.
Profit margins will continue to rise in this sector, too, in 2014, according to USA Today. The newspaper reported that tech firms are expected to see an average profit margin of 15 percent to 16 percent in 2014. That, of course, is an exceptionally strong profit margin. Simply put, tech firms in the United States should be quite profitable in the coming year.
A tech love affair?
Of course, this shouldn’t be shocking to U.S. consumers. Technology has always been a favorite of the U.S. shopper. And with the booming popularity of both tablets and smartphones, this really is something not about to change anytime soon. So if you’re betting on which companies will have successful 2014s and beyond, look first to those that focus on consumer technology.