But profit from paging fell and the company warned of slower sales growth.
First, it has raised prices on its new books, resulting in slower sales.
Analysts say fewer starts and slower sales will lead to more moderate consumer spending in the next six months or so.
Coming into the month, the auto industry was expecting to have slower sales than last year's record pace.
Why slower sales don't have to mean lower prices.
Sears had slower sales in December than several discount chains.
"If that continues, we could be looking at slower total sales growth than last year."
A major reason for slower retail sales is that nearly half of United States homes already have a personal computer.
In large measure, the job cuts announced yesterday are being made to counter the slower sales.
But the main problem in the semiconductor business is slower sales to outside users.