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Tech Companies Are Betting This One Thing Will Drive Future Revenue Growth
There are lots of new ideas influencing the technology sector right now.
Like the Internet of Things, tech security, data analysis, the cloud, and so forth.
And most of these trends are already having a big influence on the tech sector.
But according to a recent KPMG survey, none of these things tops tech companies’ list as the main revenue growth driver.
So what is the one thing tech companies are banking on?
About 27% of tech executives said mobile apps and devices will be their biggest revenue growth drivers over the next two years. Source: KPMG.
KPMG says companies are using mobile to increase productivity, improve innovation and gain greater customer loyalty.
But despite mobile’s continued dominance, the other tech trends may soon take its place.
“The wide dispersion of technologies that are drivers of revenue growth highlights the continued emergence of new markets that did not exist just a few years ago.” — KPMG
Here’s a quick look at how all the tech segments breakdown:
And where is all this mobile and other growth expected to take place?
Most tech companies say that the U.S. will be their largest revenue market, followed by Canada.
Interestingly, tech companies are considering formerly high-growth areas like China a bit riskier now…
Because of increased local competition, slowing economic conditions, and currency volatility.
That’s very important news for Apple and other major players in China.
Especially considering that China is the world’s largest smartphone market and Apple’s second-largest revenue market.
In fiscal Q3 2015, Apple earned $13.2 billion in revenue from the greater China region, which includes mainland China, Taiwan and Hong Kong. Source: Apple.
Despite tech companies’ current apprehension about growth in China, the country’s importance in the tech sector likely won’t go away any time soon.
And, apparently, neither is mobile’s.
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