Love your tablet? How about your smartphone? If you do you’re far from alone: U.S. consumers love their technology. That’s helping to make technology companies extremely profitable, as a recent story by USA Today shows. That same story indicates that this love affair will continue in 2014, with tech companies continuing to enjoy big profits.
A money-making industry
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 greater 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.
Profitable
The USA Today story also said that tech companies will continue to be among the most profitable in the U.S.. These companies should enjoy a profit margin of 15 percent to 16 percent in 2014, based on the USA Today story. That is an extremely healthy profit margin.
A tech love affair?
Of course, this shouldn’t be very shocking to U.S. consumers. Technology is definitely a favorite of the U.S. shopper. And with the exploding popularity of both tablets and smartphones, this is something not going to change in the near future. So if you’re betting on which companies are going to have successful 2014s and beyond, look first to those who concentrate on consumer technology.