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Pricing drop showing positive signs in Europe (2004-04-22)

   
 

We issued a press release today, stating that the recently introduced range of wireless products price drop in Europe has resulted in a boost in sales for the company.

Strong demand sparked sell-through Q1 growth of over 250% when comparing year on year - a massive 200.000 units of wireless combo desktops were sold during the first three months of this year.

We found that significant demand was recorded across all geographical regions during the quarter, and the business could be on track for double-digit growth for the full year. PC vendors received a boost in sales in the first quarter of 2004 as businesses increased PC system purchases: Driven by the business segment, worldwide PC shipments reach totally 45.3 million units in the first quarter of 2004, a 13.4% increase from the same period last year, according to Gartner, Inc.

The business segment was supported by increased PC replacement activity, as business confidence improved in most regions," said Charles Smulders, vice president of Gartner's Computing Platforms Worldwide group. "Our forecast model shows strong PC replacement demand throughout 2004."

We keeps up well with this increase and returned to the top 10 position based on shipments, as it showed solid growth across all regions. Stronger-than-expected second-quarter results have furthermore led us. to raise its forecast for third quarter sales slightly, but the company remains cautious in its outlook for the market.

A sustained PC market recovery requires a return to business IT spending, which, in turn, is dependant on a significant improvement in economic conditions," said George Shiffler, principal analyst for Gartner's computing platforms and economics research. Despite some recent encouraging signs, economists are still guarded in their outlook for the second half of the year, so the prospects for a significant business PC recovery by year-end remain questionable.
   
   
         
Ione Technology Inc.