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Distributors See Steady Market For CE Products

NEW YORK —

Steady as she goes seems to be the best description of the CE market by distribution executives
as we reach the mid-year point.

First half sales have been good or “met expectations” with a variety of products – large screen TVs, audio,
cameras, anything that has to do with Apple and accessories – all selling well.

But there is still price pressure in a variety of categories since consumers
are still wary about spending.

And distributors are a little wary about the effects of the Japanese
earthquake and tsunami may have on the supply chain. Cameras have
been hit but there are concerns that key components for tablet PCs
and other products might affect supplies in the second half.

Speaking of tablets distributors questioned for the TWICE Virtual Roundtable have begun to feel the activity
surrounding the new category starting to build with the real crescendo expected during the second half
when all the SKUs finally begin shipping.

And as for the second half, executives polled are at least moderately optimistic with tablets, big screen TVs
featuring IPTV or 3D features doing well, along with cameras, home audio and accessories.

What follows is an in-depth discussion of many of these trends.

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