The decline is off the peak of $1.07 trillion estimated this year.
Steve
Koenig, the association's director of industry analysis, issued the
forecast at the opening of the annual International CES gadget show on
Sunday.
The retreat doesn't reflect less
consumer appetite for what Koenig called the "dynamic duo" of tech
gadgets. Spending on smartphones and tablets is still expected to
account for some 43 cents of every dollar spent on technology this year.
But
the average price of smartphones, for example, will fall from $444 in
2010 to an estimated $297 this year, despite the number of smartphones
sold rising to 1.21 billion up from 1.01 billion.
"These lower-end devices are what's required to penetrate most deeply into these emerging markets," he said.
Smartphones
and tablets remain such key drivers of technology spending that they
are eating into other categories of devices like point-and-shoot
cameras, video cameras, portable GPS devices and handheld gaming
devices.
However, within other categories of devices there are a few pockets of growth, including wearable devices.
Smartwatch
sales are expected to be 1.5 million units globally this year, up from 1
million in 2013, said Shawn DuBravac, the association's chief
economist.
"This is a very nascent market. We're still looking for that killer application for that particular device," he said.
Ultra HD televisions, which roughly quadruple the number of pixels of a high-definition set, are also seen taking off.
There
were 60,000 such sets sold in the U.S. alone last year, a number
expected to hit 485,000 this year, the association said. However, that's
still a small number compared to the nearly 40 million TVs sold in the
U.S. each year, DuBravac said.
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