Gadgets galore at IFA expo but are the pockets of consumers deep enough?

If you love gadgets and technology then the annual IFA expo in Berlin is filled to the rafters with the newest products - everything from the smartest mobile phones to the biggest TVs.
 
But as the world's major tech manufacturers gather there this week to reveal their wares, some experts fear the current financially straitened times mean much of it could be left on the shelves.

Samuel Gee, technology analyst at Mintel, believes many of us are shying away from splashing the cash when it comes to tech.

He said: "Big ticket technology purchasing will likely slow down over 2012 and 2013, as the gloomy economic outlook continues. Television purchasing, for instance, is likely to continue falling as consumers, unexcited by 3D technology, tighten purse strings and wait for cheaper alternatives.

"Smaller ticket items like digital cameras were hurting regardless of the effect of the recession, and are in need of technological innovation to remind consumers why ownership of the latest and greatest version is a good idea."

But he added: "The generation of strong content networks will keep tablet and smartphones popular however, as they become gateways to an ever richer digital environment."

Dan Grabham, editor of Techradar.com, is another who believes a slowdown is inevitable despite the long lines of expensive equipment on offer at IFA.

He said: "Shows like IFA did used to point at the way the tech world would be in the months and years afterwards. However, with more people having less cash to spend, it's fair to think that tech firms don't live in the real world."

But he explained: "A lot of the high-end tech we see at IFA is very forward looking - OLED TVs are still at an early stage for example. Manufacturers need to sell more of these to make them cheaper so that they can sell more to the masses. That means they cost thousands of pounds now as they need to make a return on their investment."

However, Capgemini, which monitors online shopping habits across Britain, is seeing signs of a rosier future for consumer technology.

While noting a decline in electrical purchasing over the past couple of years, it has seen a rise over the past 12 months, boosted by upgrades of mobile phones and the growing popularity of tablet computers.

Chris Webster, head of retail consulting and technology at Capgemini, said: "Consumer technology will continue to see growth as innovation develops new products and devices, fuelling consumer demand.

"This is especially the case when we consider the huge growth of mobile technology such as smartphones and tablets, the impact of which we are only just seeing. Innovation keeps prices high at the leading edge, while older models are very affordable to most sections of the population."

One company which doesn't seem to be gambling on a growth in spending is U.S. giant Microsoft. It announced this week that its new computer operating software Windows 8 would cost just £24.99 for those who upgrade from previous Windows versions using an online download.

It seems to be pinning its hope on a cheaper price ensuring strong sales when the software is launched later this year. The previous Windows 7 OS cost a minimum of £150 for the basic boxed package and this new pricing is more akin to what rival Apple charges for its operating software upgrades.

Another company going down the affordability route is HTC, which announced it was releasing a slimmed down version of its flagship One Series range of phones. The Desire X smartphone packs top-of-the-range technology into a middle market handset for those looking to find a value-for-money upgrade.

But it's not all cheap and cheerful. Among the headline grabbers at IFA was a Samsung Galaxy Camera that acts like a tablet by running the Android Jelly Bean operating system.

Sony showed off a portable computer that was part laptop and part tablet called the Vaio Duo 11 while other big names revealed mind-boggling devices such as Panasonic's mammoth 104 inch glass-less 3D TV.

Stuart Miles, editor of Pocket-Lint.com, said: "The recession doesn't hold back people's aspirations for new technology.

"Many of the gadgets shown at IFA do not cost as much as you might think and the big bold ones that do will not be out for a couple of years.

"By then we would hopefully have bounced back or people will have had the time to save up for it."