Thursday, August 03, 2006

Cheap Chips Cut Laptop Prices

The price war between Intel and Advanced Micro Devices cut the average price of a laptop by 18 percent compared with last year and led to mixed results for the semiconductor industry, according to a report released Thursday.

The Semiconductor Industry Association (SIA) reported that worldwide sales of semiconductors totaled $19.6 billion in June, a more than 9 percent increase from June 2005.

The June sales figures brought the second-quarter 2006 sales total to $58.9 billion, but that represented a slight decrease of 0.3 percent from the first quarter of this year. However, it was still 9.4 percent better than the second quarter of 2005.

All the same, the SIA had been predicting a 2 percent rise in the second quarter over the first quarter, so the slight drop-off was unexpected.

“The results are a little bit mixed, but overall we think we are solidly on track to have a record high year,” said Anne Craib, director of international trade and government affairs at the SIA. “Q2 was not what we anticipated, but it was a very small decrease.”

Continued

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