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Robust Economies and Open Borders Fuel Surge in IT Investments in Central and Eastern Europe, Says IDC

Moscow, March 28, 2006 -- Digital cameras proved exceptionally popular in Russia in 2005, with shipments more than doubling over the previous year, shooting up to more than 2.64 million units. According to IDC, falling prices meant revenue grew at a lower but still impressive 83.6%, reaching $882.4 million last year.

"Russian consumers have rapidly appreciated the benefits of digital devices, which are now in daily use," says Zarina Kamytbaeva, Research Analyst, Imaging and Hardcopy Devices, IDC Russia. " The penetration of digital cameras has been facilitated by well-developed distribution channels and retail chains as well as by easily available printing services."

Falling prices have engendered a shift to more advanced technology. Three- and four-megapixel (MP) cameras accounted for almost 70% of shipments in 2004 while 4MP and 5MP cameras accounted for more than 64% in 2005. Moreover, the number of 5MP cameras shipped in Russia last year almost quintupled, which is a reflection of both falling prices and the overall healthy state of the Russian economy.

The Russian market for digital cameras is expected to stay strong over the next few years, with double-digit shipment growth expected again in 2006. Although revenue will not increase as quickly due to continuing price decline, the shift to more advanced technology will help offset the difference.

IDC’s Russia Digital Camera Quarterly Tracker examines the digital point-and-shoot and single lens reflex segments of the camera market through data on direct sales to end users, distributors, mass merchandisers, consumer electronics stores, and photo specialty and Internet retailers. The tracker contains market size, vendor market shares, and volume and revenue breakdowns by megapixel, optical zoom, distribution channel, and price.

For more information, please contact Mikhail Novikov (+7 495 739 22 50; mnovikov@idc.com) in Russia or Tatiana Hinova (+420 221 423 140; thinova@idc.com) from anywhere else.

IDC Provides Global Research with Local Content
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives.

IDC CEMA
To cover Central and Eastern Europe and the Middle East and Africa, IDC employs 90+ analysts in a coordinated network of offices in 19 countries, with regional research centers in Prague, Moscow, Dubai, and Istanbul. Customers include a wide range of ICT hardware, software, and services suppliers, governments, and members of the financial community.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com