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eMachines, the Korean-owned, American-operated cheap PC maker, is cutting fourth quarter production by 20 per cent in anticipation of a tough time for PC sales in the US retail channel.

eMachines may be more cautious than most - the company
messed up big time over unsold inventory earlier this year. (The company grew like a rocket on the back of bundling deals with ISPs, but sales fell, when the promotions ended).

However, eMachines' pessimism does not bode well for other hardware suppliers - if eMachines can't sell PCs at its rock-bottom prices in the run-up to Christmas, who can? eMachines says it expects to offset the decline in the US, as it ramps up its supply deal with Dixons, the big European electronics retail chain, which took on the line for the first time this year. ®

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