The Future of Tech Spending: A Record Year Ahead?
Get ready for an exciting 2025, where American consumers are expected to spend an unprecedented $537 billion on apps, devices, and gadgets. This prediction comes straight from the Consumer Technology Association (CTA). But hold on—there’s a twist in the tale. Brian Comiskey, the CTA’s futurist, shared some insights at the CES 2025 event in Las Vegas that might make you pause. He cautioned that proposed tariffs could put a damper on this spending spree.
- Projected Growth: The CTA anticipates a 3.2% increase in retail revenues for the U.S. consumer tech sector over 2024.
- Tariff Impact: Potential tariffs could spell trouble for tech purchases, especially smartphones and laptops.
If these tariffs come into play, we could see a significant decline in purchasing power—somewhere between $90 billion to $143 billion, according to Comiskey. The CTA’s October report delved into two specific tariff proposals: a 10% or 20% tariff on all global imports and a hefty 60% tariff on imports from China. This could mean price hikes of 46% for laptops and tablets, 40% for gaming consoles, and 26% for smartphones.
“Tablets and laptops may see spending drop by as much as 68%, gaming consoles by up to 58%, and smartphones by up to 37%,” Comiskey elaborated.
{Brian Comiskey at CES 2025}
Without these tariffs, the consumer tech industry is poised for what Comiskey calls a “super cycle” of spending. This surge is partly driven by cutting-edge AI features in new PCs, tablets, and smartphones—think Apple Intelligence or Microsoft Copilot+. Consumers are eager for these advancements; many are already familiar with generative AI and use it at work.
AI is also transforming classic tech categories like fitness trackers, smart TVs (look out for Google’s new offering), and parenting gadgets like electronic baby rockers. Whether AI truly enhances these products might not matter much. What does matter is Gen Z’s rising influence. By 2025, they will make up about 27% of the global workforce according to Udemy—and they’re known for their love of new tech and being early adopters.
The stage is set for an exciting year in consumer technology. However, how big this year will be could largely depend on the policy landscape. Whatever happens, one thing is clear: innovation will continue to captivate us all.
