Moscow, March 28, 2007 -- Digital cameras again proved to be one of the hottest selling items last year in Central and Eastern Europe. According to recently released IDC data, shipments shot up by nearly 23% to almost 7 million units in 2006 and are set to exhibit solid growth again this year. By contrast, technology advances and competition have pushed prices to new lows, and factory revenue actually contracted by almost 4% last year to $1.65 billion.

"It is hard to underestimate the importance of falling prices on market revenue and the availability of technology across the region," says Nickolay Grigorov, Senior Analyst, IDC CEMA. "Shipments more than doubled in the bottom three price categories last year as 6MP cameras replaced 5MP as the resolution of choice."

The downward pressure on prices is most obvious in Russia, the region's largest and fastest growing market in shipment terms. Accounting for half of shipments and just under half of revenue in Central and Eastern Europe, the Russian market saw cameras fly off the shelves as unit shipments soared by more than 30%. Nevertheless, revenue fell by more than 8% in U.S. dollars (and more than 10% in euro terms) as competition intensified in the second half of the year, sending prices down and consumers to the stores.

Competition is fierce among vendors active in the Russian digital camera market. Sony gained considerable ground on Canon, which held the top spot in 2005, and the two were neck and neck for first. Olympus held onto third. Together, these three vendors captured more then 54% of shipment volume last year.

"Camera sales in Russia still have some way to go before reaching a peak," says Zarina Kamytbaeva, Research Analyst, IDC Russia. "Except for Moscow and St. Petersburg, the growth potential remains high in the provinces. The high demand, however, does not guarantee sales; good relations with key distributors could make the difference between success and failure."

IDC's Central and Eastern European Quarterly Digital Camera Tracker delivers timely quarterly data for the digital camera market by sub-region and country, breaking down countries by price segment, zoom, channel, type, and resolution. It includes in-depth data that unveils the technologies affecting future designs, shipment dynamics, and vendor strategies. The tracker delivers insight that helps vendors identify opportunities, position their products and brands, and anticipate future changes in the market.

About IDC

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. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries. For more than 43 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 120+ 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.

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For more information about IDC research on the digital camera markets, please contact Mikhail Novikov at mnovikov@idc.com or at +7 495 739 22 50.