Seasonal cheer as channel sees spending surge

The last three months of 2003 are coming in strong for companies in the channel serving both business and consumer technology needs.

The latest figures form analysts Canalys show an upsurge in demand in Eastern and Western Europe, as well as the Middle East.

Results reported in January should be better than expected, which is even more impressive given forecasts were made as recently as September for this quarter.

"The channel is emerging from a period of downturn and its return to growth will make for a happier holiday period for all. IT budgets are being freed up again, investors have been buying shares in IT vendors and consumers have continued to spend," said Canalys analyst Rachel Power in a statement.

The study of 102 companies in the channel found HP tops the list for support for printers, storage and PCs while Cisco is the top-rated networking vendor.

In the consumer market, must-have items this Christmas have been DVD recorders, portable music players and flat-panel TVs, though there has been insufficient supply of LCD screens, which 31 per cent of respondents said will affect their business.