LG G3 Smartphone Sales Are Helping Turn Around The Korean Electronics Maker

New devices like the LG G3 have helped LG Electronics (066570: Korea SE) sell a record number of smartphones during the second quarter of 2014 and have helped the company’s mobile sector turn a profit for the first time in a year.

The South Korean manufacturer reported a profit of $83.4 million out of a total $3.51 billion in sales and considers its success a sign of change within the mobile industry. While top manufacturers like Samsung Electronics Co. (KRX: 005930) are reporting losses for the recently passed quarter, formerly struggling phone makers like LG and HTC Corp. (TPE: 2498) are tapping into hardware innovation to gain attention from consumers.

Though LG used the catchphrase “Simple is the new smart” when announcing the LG G3 in March, the flagship smartphone includes a number of features that are far from modest. In particular, the LG G3 includes a Quad HD 2560x1400 resolution display, one of the most advanced smartphone displays currently on the market. The device also includes features like its 13-megapixel camera with optical image stabilization and its 3GB RAM and 32GB internal memory options. Dr. Ramchan Woo, head of smartphone planning at LG described the G3 as a device with complicated technology that doesn’t require a user to read the manual, at its March unveiling.

June reports indicated that the LG G3 was outselling the rival Samsung Galaxy S5 3-to-1 in South Korea. Notably, both companies are based in South Korea. The LG G3 became available at major U.S. mobile networks in July.

LG may have shipped over 900,000 units of the LG G3 during the second quarter, according to analysts. But the flagship accounted for only a fraction of the total 14.5 million LG smartphones sold during the second quarter. The manufacturer has a number of mid-range devices within its L-Series that are gaining popularity due to their affordability and LTE wireless data capabilities. The recently announced LG G3 Beat, is a mini version of the LG G3, bringing many of its features to a lower price point. LG is also the manufacturer of other popular devices like the Nexus 5 smartphone sold by Google Inc. (NASDAQ: GOOG).

To keep up momentum, LG plans to focus on marketing this quarter during the current quarter, which could prove a challenge as major rivals such as Samsung and Apple Inc. (NASDAQ:APPL) prepare to release new flagship devices. The Samsung Galaxy Note 4 and Apple’s rumored large-screen iPhone 6 are both expected to be announced in September.

Apple iPhone 6 Mass Production Reportedly Begins With 4.7-Inch Model

Mass production for the Apple Inc. (NASDAQ:AAPL) 4.7-inch iPhone 6 has reportedly begun in preparation for the device’s tentative mid-September release. Though Apple is rumored to be planning two new iPhone models, the larger 5.5-inch smartphone may not begin mass production until September, when it will likely be manufactured alongside new iPad models, according to reports from China.

Apple is expecting high demand for the upcoming iPhones and is reportedly having its suppliers produce between 70 million and 80 million units of both the 4.7-inch and 5.5-inch models for the devices’ initial launches. The Cupertino, Calif.-based company will likely host its keynote event to introduce the iPhone 6 during the second or third week of September, while the smartphone may go on sale on Sept. 19. The 5.5-inch iPhone, which may be called the “iPhone Air,” is rumored for a release in December or early 2015.

Analysts have detailed that the bigger iPhone may be facing production issueswith its extra-large screen as the reason for its delay. This would be the first time Apple has worked with a screen larger than 4 inches for a smartphone.

Still, Apple is reportedly aiming to surpass its success with the iPhone 5s and iPhone 5c, which were released simultaneously in 2013. Though iPhone 5c was originally considered a consumer flop, Apple recently reported that it’s “unapologetically plastic” smartphone saw a tremendous sales growth during the last quarter. The electronics giant says it sold 35.2 million iPhones in the last three months.

With the iPad slowing in sales, analysts expect Apple fans may favor the 5.5-inch iPhone, as a large iPhone would in essence be an iPad that can make phone calls. The super-sized iPhone would also be a cash cow for Apple; analyst Gene Munster expects the smartphone will sell for about $700, while the iPad Mini costs $400.

But Apple is not giving up on its iPad line as yet. The new iPad mini and iPad Air models are expected to be announced in October following mass production in September. The tablets may finally receive Apple’s Touch ID sensor, which was introduced on the iPhone 5s.  

Apple executives are reportedly calling the upcoming product lineup the best set of devices produced by the company in 25 years. The new iPhones in particular may feature displays made of sapphire glass, a faster processor and larger memory capacities. The new iPads are expected to be much thinner than previous models.

“We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce,” Apple CEO Tim Cook said at the company’s second-quarter earnings call.

Israel Rejects Kerry's Cease-Fire Proposal, Agrees To Twelve-Hour Humanitarian Truce

As the death toll climbed to at least 840 Palestinians and 35 Israeli soldiers, Israel and Hamas agreed Friday to a 12-hour cease-fire so that residents of Gaza could restock food, water and medical supplies. The cease-fire will take place from 8 a.m. to 8 p.m. local time. 

Earlier Friday, U.S. Secretary of State John Kerry, U.N. Secretary-General Ban Ki-moon, Egyptian Foreign Minister Sameh Shoukry and Arab League Secretary General Nabil Al-Araby spoke at a press conference in Cairo, calling for a seven-day humanitarian cease-fire for Eid, the holiday marking the end of Ramadan.

"We are calling for humanitarian cease-fire for Eid for seven days in hope this will prompt the parties to hear a call of conscience,” Shoukry said.

Israel rejected the seven-day truce but agreed to the 12-hour temporary break from clashes that Kerry called a "down payment,” to a longer cease-fire. He said he hopes it could be extended to one full day.

As for a permanent peace, Kerry said the leaders are not giving up. “We still have some terminology in the context of the framework to work through, but we are confident it will ultimately work.” He choose not to elaborate on any specific terminology. 

The news that Israel had already rejected the original proposal broke several hours before Friday’s press conference.

"Kerry's offer emphasized the benefits Hamas is seeking, more than it gave priority to our security demands," a senior Israeli security official told Haaretz. "Kerry's proposal was unacceptable."

On Wednesday, Hamas leader Khaled Meshaal said they would not accept any cease-fire proposal that did not end the blockade on Gaza, which means opening the Rafah crossing to Egypt.

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"We cannot accept any proposal that does not include the lifting of the siege on Gazans," Meshaal said in a press conference in Doha, Al-Jazeera reported.

Free coupon Gas

According to AAA’s Daily Fuel Gauge Report, the current national average for a gallon of regular gasoline is $3.42 — that’s up about 40 cents since January! Unless you take the bus or own an electric car, you have to pay for gas no matter how much it costs. But don’t lose hope — there are lots of ways that you can score fuel for free! Try these five tips to help take some of the sting out of that all-too-frequent trip to the pump!

1. Be a moving billboard

You’ve probably seen a car with advertisements plastered all over it in the lane beside you during rush hour. But did you know that cars like these actually get free gas in exchange for the advertisements? Sites like FreeGasHelp will pay between $5 and $200 in gas cards every month (gas cards come within two to four weeks after your vehicle has been verified) if you allow your car to be used as a traveling billboard. After you apply on their website, you will be connected with an advertiser. You typically start out with just a small decal, but you can eventually move up to a full car wrap if interested. So what are the qualifications? You must drive at least 1,000 miles a month, own a cosmetically sound vehicle, have a valid license and carry up-to-date auto insurance.

2. MyPoints rewards

My Points is a program that offers rewards (like gas cards!) for doing things you probably already do: shopping, reading emails, and doing web searches! Membership is free, and it only takes a couple of minutes to sign up. Once you register, you can earn points by printing coupons from their website, referring your friends, downloading their tool bar (which gives you points each time you use it), taking surveys, and playing instant win games. Once you accumulate 1,750 points (this took me a few months), you can cash your points in for a $10 Shell gift card. 3,950 points can get you a $25 BP or Shell gas card. It takes between two and six weeks to receive your gift card in the mail.

3. Travel rebate rewards

Lots of hotels and bed & breakfasts offer free gas cards when you book a stay. For example, theSuper 8 in Modesto, CA is currently offering a $25 gas card when you stay at their hotel. Not staying in Modesto? Check out Best Western’s rewards program. You can score a $25 Shell or Exxon/Mobil gas card (when you accumulate 6500 points) by staying at their hotels or participating in their partner offers. Is a bed & breakfast more your taste? Check here to find a bed & breakfast that offer gas incentives.

4. Take surveys

In exchange for signing up and taking surveys about various topics (which range anywhere from healthcare to toothpaste reviews), many market research companies will allow you to cash in your survey points for gas cards. For example, when you earn 34,650 points (this took me a couple of months of doing surveys almost daily) on MyView, you can choose a $25 Shell gift card, which then comes in the mail in four to six weeks. I’ve also scored free gas cards on Survey Spot and MySurvey.

5. Open a bank account or participate in bank special offers

Some banks and credit unions offer free gas cards when you open a new checking account or enroll in a special service with them. For example, U.S. Bank is currently offering cash back if you apply for a Business Cash Bonus Check Card with a business checking account or a U.S. Bank Cash Bonus Check Card with a checking account. After you link the new account to a Speedpass key tag and spend $50 at Exxon and Mobil stations, you will earn $50 back!

Rio

Aereo Supreme Court Case: Retransmission Fees At The Heart Of Legal Battle With CBS, NBC, ABC, Fox

The U.S. Supreme Court on Tuesday heard arguments in a case that could radically transform the way Americans watch broadcast television. If you haven’t been paying attention to the debate until now, you may soon have no choice.

The battle is between the major broadcast networks (ABC, CBS, NBC and Fox) and Aereo Inc., a two-year-old startup based in Long Island City, N.Y., and backed by Barry Diller’s IAC/InterActiveCorp (NASDAQ:IACI). Aereo, its supporters say, is a kind of godsend for cable cord cutters. It’s a hassle-free subscription-based service that allows users to watch live broadcast television on their computers or mobile devices. The service costs about $8 a month and doesn’t require a cable subscription.

Unsurprisingly, the Big Four networks don’t like it. They say it amounts to copyright theft, and they sued to have Aereo shut down. While the legal case hinges on a dizzying array of technical semantics, what’s at stake is really quite simple: Is Aereo stealing the broadcasters’ copyrighted content, or is it merely giving its users access to free public airwaves?

First, a little history: Since the dawn of the broadcasting era, public airwaves have been free for consumers to access broadcast programming, and up until the 1980s, most American households received their TV channels through personal antennas, those old-fashioned rabbit ears your grandfather used to spend hours adjusting until the picture cleared up. But with the advent of cable television, viewers began getting their broadcast networks delivered to them through their cable providers. Because those signals aren’t accessed live from an antenna, they’re considered retransmissions, or a form of “public performance,” that are subject to licensing fees by their copyright owners.

Fast-forward 30 years, and retransmission fees have become an incredibly lucrative, even indispensable revenue stream for broadcast networks. As advertising revenue has suffered in the wake of competition from cable and increased DVR viewing, retransmission fees have skyrocketed. According to a report from the financial research firm SNL Kagan, broadcast fees are expected to rise 10 percent to 12 percent each year for the next three years, reaching $6.6 billion by 2017. You might recall last year’s protracted battle between CBS Corp. (NYSE:CBS) and Time Warner Cable Inc. (NYSE:TWC), which resulted in a month-long blackout of the Eye Network. That fight was over -- you guessed it -- retransmission fees.

And, ultimately, so is the broadcasters’ fight with Aereo. If the startup had agreed to pay retransmission fees to the broadcasters, the Supreme Court case wouldn’t be happening (and Aereo might not exist at all, assuming the fees would be cost-prohibitive), but Aereo maintains that it's not “retransmitting” signals but instead merely pulling them out of the airwaves. The service uses tiny antennas to capture broadcast signals and stream them to its subscribers. If cable’s retransmission of a broadcast signal is tantamount to a public performance, Aereo argues that its service is a private one, because each of its antennas delivers a signal to only one household at a time. So, in a sense, to the user, Aereo acts as a remote set of rabbit ears.

However, the networks say Aereo’s inventors have purposely engineered the service to act as a copyright-law workaround. They compare Aereo to a Rube Goldberg machine, an overly elaborate contraption that performs a simple task. “Merely enabling TV programs to appear on the screens of mobile devices does not represent much of a technological breakthrough on Aereo's part,” Fortune pointed out on Monday. “Aereo's breakthrough is different. Its technology purports to overcome legal obstacles, not engineering ones.”

But Kyle Alspach, a writer for the Boston Globe’s BetaBoston website, argued that the broadcasters are essentially cannibalizing their own futures. With more viewers -- particularly young ones -- watching television exclusively through the Internet, services like Aereo could be the last bastion of live television viewing, and thus the last bastion of television commercials. Rather than see Aereo as a threat, Alspach argues, the networks would be better off seeing it as an opportunity to expand the reach of their ads, which most people these days fast-forward through via DVRs. “If the television viewer of the future is anything like me, then broadcasters are making a mistake in thinking streaming service Aereo is the enemy,” Alspach wrote.

It’s a fair point, but if the history of media can serve as a guide, we can expect those companies that benefit from the status quo to keep on doing what they can to preserve it, innovation be damned.

Israel: Migrants protest outside foreign embassies

JERUSALEM (AP) — Thousands of African migrants in Israel marched up to the embassies of the United States and European countries on Monday to demand asylum and work rights from the government.

About 60,000 African migrants, mostly from Sudan and Eritrea, have made the long journey trekking through Egypt and other Muslim countries to reach Israel in recent years. Some have fled the violence or oppression in their home countries while others have sought a better life and more economic opportunities in Israel.

About 10,000 people took part in Monday's march, police said. The migrants, many of whom are menial laborers in Israel, have been on a three-day strike. On Sunday, more than 13,000 of them rallied in central Tel Aviv.

The migrant influx has sparked tensions with some Israelis who blame them for thefts, violent crimes and for transforming the Jewish identity of some neighborhoods. Many of the African migrants have settled in a neighborhood near the bus station in southern Tel Aviv, where longtime residents say they feel threatened.

Dawit Domuz from Eritrea told Israel Radio he had escaped danger in his home country to reach the Jewish state. "We arrived in Israel seeking asylum and we want the Israeli government to check our asylum request in a transparent way," he told the station in perfect Hebrew. "They should grant us basic rights until we can return to our countries."

The migrants are seeking refugee status from the Jewish state. But according to Sigal Rozen of the Hotline for Migrant Workers advocacy group, only a few hundred, all being held in detention centers, have even been allowed to apply.

Of those, "not a single Eritrean or Sudanese" has been approved, she said. Sudanese applicants have not received replies, she said, and a small number of Eritrean cases have been rejected. She said Israel has told the Eritreans that years of forced conscription they will face if they return home is no reason to stay.

Israeli Prime Minister Benjamin Netanyahu said Monday "no demonstration or strike will help." Speaking to members of his Likud Party, he said: "We are determined to expel everyone who got in here before we closed the border." Over the past year, a new fence built along the Egyptian border has all but halted the influx of Africans.

In a statement, Israel's Foreign Ministry said that Israel "tries to balance the need to control its borders with the need to protect the human rights of those who enter." It said the government is giving all applications "thorough treatment" in accordance with international legal obligations. "Enforcement is carried out under Israeli law and in conformity with Supreme Court rulings," it said.

Tel Aviv Deputy Mayor Arnon Giladi told Israel Radio that the migrants crossed into Israel through Egypt and hence that country should be responsible for granting asylum status. He said they arrived in Israel for financial reasons.

"They are not refugees," Giladi said. "They are economic migrants, they are not more than that." The government has offered incentives for migrants to leave but is unable to deport most of them because they would face harm if they returned to their countries of origin.

The migrants, along with their supporters from Israeli rights groups and others, gathered outside the U.S. Embassy near the Tel Aviv promenade on Monday. Some waved their national flags while others carried makeshift cardboard signs reading, "freedom, not prison," and "nobody chooses to be a refugee."

French minister: OK to ban comic's show

PARIS (AP) — France's interior minister said Monday that local officials have the right to ban shows on a national tour of a comic whose performances are considered anti-Semitic.

Hours later, Bordeaux's mayor, former Prime Minister Alain Juppe, accepted the offer, making the wine capital the first French city to cancel a show by Dieudonne M'Bala M'Bala ahead of the comic's tour.

Interior Minister Manuel Valls' decision to target Dieudonne was unusual because it touches on what might be viewed as free expression and because Dieudonne has performed for decades. He is now well known for popularizing a hand gesture that's been used by sports stars such as Nicolas Anelka. Valls has criticized the "quenelle" gesture as an "inverted Nazi salute."

Dieudonne takes his show on the road this week after performances at his regular venue in Paris, a theater he long owned but now rents. Valls notified regional prefects on Monday that they, along with mayors, can close Dieudonne's shows based on a potential risk to public order and instructed them how to proceed.

The move to keep Dieudonne from performing cuts across political lines. Juppe — a conservative mayor of Bordeaux and a political rival of France's Socialist government — said "conditions are fulfilled" to ban the show in the city on Jan. 26. Other conservative mayors have indicated they want to keep the comic away from their towns, too.

Prime Minister Jean-Marc Ayrault had said there was "no doubt" that Thursday's show in the western city of Nantes, where he used to be mayor, would get the ax. That point of view is contested by Dieudonne's lawyer. "We are not at all worried," Sanjay Mirabeau said by telephone.

He contended that officials would have to show that the "risk is real." He said if the show is shut down, the comic's lawyers will demand an urgent judicial review of the matter. Mirabeau said 5,200 seats in the 6,000-seat theater in Nantes have been sold, and "the house will be full" by Thursday.

Valls said racial and anti-Semitic remarks in Dieudonne's show are legal infractions and "no longer belong to the artistic and creative dimension." In a notice sent to prefects, Valls said that Dieudonne's show, "The Mur," ("The Wall") contains "disgraceful and anti-Semitic words toward Jewish personalities or the Jewish community ... and virulent and shocking attacks on the memory of victims of the Holocaust."

The 47-year-old Dieudonne (pronounced DYEU-dun-ay) denies his act — or the "quenelle" — is anti-Semitic. However, he has been convicted more than a half-dozen times for inciting racial hatred or anti-Semitism over the years.

He was most recently convicted last fall for using the word "Shoananas," a mash-up of the Hebrew word for Holocaust, which is used in France, and the French word for pineapple. The song was seen as deriding Holocaust survivors and victims.

An investigation was opened last week after Dieudonne allegedly made an anti-Semitic slur toward a Jewish journalist on France-Inter radio. "When I hear him (the journalist) talk, you see ... I say to myself gas chambers ... a pity," Dieudonne said during a performance last month, parts of which were shown on French TV.

The interior minister said he wants the comic's shows banned but conceded that doing so entailed delicate legal questions. Even those who support silencing Dieudonne have voiced fears that doing so could be counterproductive since the issue touches on freedom of expression.

Valls said in his instructions to local officials that they can ban the show in one of two ways: by asserting that public authorities must do so to prevent potential trouble that such a show risks causing, or pronouncing the show itself constitutes a risk to public order.

Serge and Beate Klarsfeld, the famed Nazi hunters, along with their son Arno plan to lead a protest in Nantes on Wednesday, the night before Dieudonne's show. The Nantes show kicking off the tour is to be followed by appearances in two other French cities this week, then to continue at that rate for months. Dieudonne is scheduled to perform in nearly 30 cities through June.

Mirabeau, the comic's lawyer, noted that Dieudonne's performances have not disturbed public order at the private Paris theater, contending it would be hard to cancel a show with a full house.

2014 German leader suffers pelvic injury on ski holiday

BERLIN (AP) — German Chancellor Angela Merkel cracked her pelvis during a skiing accident in the Swiss Alps and will have to cut back on her work schedule for the next three weeks, her spokesman said Monday.

Merkel's spokesman Steffen Seibert said the chancellor suffered what she first thought was just a bruise to her left rear pelvic area while cross-country skiing in southeast Switzerland last month. But doctors later determined it was a "incomplete" bone fracture that will require her to rest for three weeks, he said.

"The doctors' orders are to lie down," Seibert told reporters. In response, Merkel canceled a Wednesday visit to Warsaw, Poland, and Luxembourg Prime Minister Xavier Bettel called off his Thursday trip to Berlin.

Merkel, 59, had been skiing "at low speeds" when her fall occurred, Seibert said. He was unable to say if another person was involved. She will continue to preside over Cabinet and government meetings, using a walking aid to get around, he added.

Last week, Merkel sent her wishes for a speedy recovery to German Formula One legend Michael Schumacher, who suffered a serious head injury while downhill skiing in France. Schumacher has been in a medically induced coma at Grenoble University Hospital and doctors said Monday he is still in critical but stable condition.

Experts say cross-country skiing is much less dangerous than downhill. Cross-country trails are mostly flat and the sport is more about endurance than speed. "Without wanting to play down what happened to Mrs. Merkel, the chances of injury in cross-country skiing are slim compared to downhill," said Michael Berner of Germany's Foundation for Ski Safety. "Still, anyone who does cross-country skiing should learn to do it properly first and have a certain level of fitness."

The accident happened around Christmas during Merkel's annual ski trip to Switzerland's Engadin Valley, which includes well-known ski resorts such as St. Moritz.

Monster waves slam into UK after US storm

LONDON (AP) — Waves up to 27 feet (8.2 meters) high slammed into Britain's southwestern coast on Monday, as lashing winds and heavy rain battered parts of the U.K. and coastal residents braced for another round of flooding.

The monster waves were recorded at Land's End, the southwestern tip of the U.K. In Aberystwyth in Wales, seafront homes, businesses and student residence halls were evacuated as high tides hit the Welsh coast.

The Met Office, Britain's weather forecasting body, warned of wind gusts up to 70 mph (113 kph) and exceptionally large waves along the coasts of Wales, southwest England and Northern Ireland. It said the storm is loosely connected to the weather system that caused the U.S winter storm, which dumped large amounts of snow in the Northeast and delayed thousands of flights.

"A very strong jet stream helped to steer a lot of low pressure across the U.K.," said forecaster Charles Powell. At least seven people have died in a wave of stormy weather that has battered Britain since December, including a man killed when his mobility scooter fell into a river in Oxford, southern England.

The Environment Agency issued three severe flood warnings Monday — meaning there is a threat to life and property — for the county of Dorset in southwestern England, as well as more than 300 less serious flood alerts.

Sweet dream: Eurythmics uniting at Beatles tribute

NEW YORK (AP) — The Eurythmics are reuniting — to pay tribute to the Beatles.

The Recording Academy announced Monday that Annie Lennox and Dave Stewart will perform as a duo for "The Night That Changed America: A Grammy Salute to the Beatles." The event will be taped at the Los Angeles Convention Center on Jan. 27, a day after the Grammy Awards

Longtime Grammys producer Ken Ehrlich, who is also producing the Beatles special, thought the Eurythmics would be ideal to honor the iconic group. "When it came around to booking this show, what I felt was important was to try and find those artists who not only would be able to interpret Beatles songs, but would also have an ... understanding of what they meant," he said in an interview.

The Eurythmics, who sold millions of albums and whose hits include "Sweet Dreams (Are Made of This)," released their debut in 1981. Ehrlich said Lennox and Stewart, who have launched successful solo careers, are thrilled to perform in tribute to the Beatles.

Ehrlich wouldn't say which Beatles tune the British duo would perform, but John Mayer and Keith Urban will pair up to perform "Don't Let Me Down," while Alicia Keys and John Legend will perform a duet on "Let It Be." Maroon 5 also will hit the stage.

The special will air on CBS on Feb. 9 — exactly 50 years after the Beatles made their U.S. debut on "The Ed Sullivan Show." An estimated 73 million viewers tuned in to watch the event, which has become one of the world's top cultural moments.

"They really did change people's lives, so what I'm hoping this show ... gets across is the message that occasionally in history we are touched by certain artists who have a profound effect on us beyond just the music that they make," Ehrlich said.

Ehrlich wouldn't confirm if Paul McCartney or Ringo Starr would attend the event, though the Beatles will be honored with a lifetime achievement award two days earlier at the Recording Academy's Special Merit Awards in Los Angeles.

The special will include about a dozen performances, Ehrlich said. More performers will be announced at a later date.

Forgot to Photoshop

Wow, Justin Timberlake has some really long arms.

The day I lost control…

To anyone people who makes fun of Leo DiCaprio for having no Oscars…

Lower Prices To Affect Global Spending On Technology In 2014

CES 2014: Global Spending On Tech Expected To Fall 1% In 2014 Due To Decline In Selling Prices

Worldwide spending on technology is projected to slip 1 percent in 2014 due to a number of factors, the Consumer Electronics Association announced on Sunday, at the International Consumer Electronics Show, or CES, in Las Vegas.

According to Steve Koenig, the association’s director of industry analysis, the 1 percent decline in spending will reduce the amount that consumers are expected to spend on gadgets this year to $1.06 trillion. In 2013, consumers spent $1.07 trillion on gadgets, a 3 percent growth over the previous year. And, one of the main drivers of this revenue loss is the decline in the average selling price of devices, even as consumers around the world -- especially in emerging markets like China -- are opting for lower-priced gadgets.

“We’ve really taken the cream off the top,” Los Angeles Times quoted Koenig as saying. “Now we’re really trying to penetrate these developing markets.”

According to Koenig, the average price of smartphones is projected to fall to an estimated $297 this year from $444 in 2010 -- a 50 percent fall -- while smartphones sales are likely to rise to 1.21 billion units, up from 1.01 billion last year.

The decline in spending does not reflect waning consumer appetite for gadgets, and smartphones and tablets are expected to account for approximately 43 cents of every dollar spent on technology in 2014, Associated Press reported.

Growth in emerging markets is expected to slow to 2 percent in 2014 from the 9 percent growth rate witnessed last year. But, this number compares favorably to the 4 percent decline expected in spending on gadgets in developed markets this year, according to a report from Barron’s.

Meanwhile, consumers are expected to spend the most on smartphones and tablets, which will account for 43 percent of total consumer spending in 2014.

While spending on other devices such as point-and-shoot cameras, video cameras and portable GPS devices is expected to fall, wearable devices are likely to lighten consumers' wallets. Smart watch sales are expected to reach 1.5 million units globally this year, up from 1 million in 2013, Shawn DuBravac, CEA’s chief economist, told AP.

The 2014 International CES is scheduled to be held in Las Vegas from Jan. 7-10.