Chip sales rise despite price cuts

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Despite plunging prices for CPUs, worldwide semiconductor sales rose 9.4 percent from last year, reaching $58.9 billion for the second quarter. This is great news for the industry and shows that the industry is still alive and kicking even though Microsoft Vista is delayed.

The industry struggled as giants Intel and Advanced Micro Devices (AMD) slashed prices in new chip wars, helping to drive the average price of a laptop down by 18 percent compared to the second quarter of 2005, according to figures released Thursday by the Semiconductor Industry Association (SIA). That global trend was mirrored in the U.S. where the average price for retail notebook PCs dropped from $1,141 in the second quarter of 2005 to $938 a year later, according to Current Analysis.

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