Tech sector remains a profitable one

This past holiday season proved once more how popular tablets, smartphones and laptops are with consumers. It’s very little wonder, then, that a recent story in USA Today predicted that 2014 will see huge profits for technology companies. The same story predicts that tech companies will continue to be among the most profitable U.S. businesses. Again, this isn’t a surprise.

A money-making industry

According to USA Today’s story, 2014 really should be an exceptional year for tech companies. The paper, relying on 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 a lot better than in 2013, when tech firms only saw their net incomes jump by an average of 1.9 percent.

Big profits

The USA Today story also said that tech companies will remain among the most profitable in the United States. These companies should enjoy a profit margin of 15 percent to 16 percent in 2014, according to the USA Today story. That is an extremely healthy profit margin.

Why so much success?

This success shouldn’t be surprising. Today’s consumers are infatuated 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 almost constant basis. Tech is certainly king today.

Posted on: 03.05.14