Chip wars force notebook prices down

THE SEMICONDUCTOR Industry Association (SIA) said worldwide sales of chips amounted to $19.6 billion in June, a rise of nine per cent from June last year.

According to the SIA, total semiconductor sales during the first half of 2006 amounted to $118 billion, an 8.3 per cent rise over the same period last year.

The numbers reflect "mixed earning results" over the last few weeks, according to SIA convenor George Scalise.

PC unit sales were up by 10 per cent in Q2 compared to Q2 2005 but average sales prices have been hit by price wars, with notebook prices dropping by over 18 per cent compared to Q2 2005.

Unit demand for mobile phones in the second quarter of this year was 235 million and the whole year will bring the figure close to one billion. µ