Cheaper laptops, sales in emerging markets and the replacement of old desktops are set to keep computer sales growing this year, according to a report from Stamford, Conn.-based market researcher Gartner Inc.
Worldwide PC shipments are expected to be 293 million this year, up 11% from last year.
“The PC market is fundamentally in good shape,” said Gartner research director George Shiffler. “Mobile PCs continue to exhibit strong momentum, emerging-market growth remains robust and desk-based PC replacement activity is stirring.”
Falling prices and greater access to the Internet are spurring consumer demand for laptops, according to the report.
Mobile PCs could gain as affordable laptops become more widely available, Shiffler said.
Emerging markets are accounting for more PC sales, driven by economic growth and ballooning middle classes in other countries, the report showed.
And replacing outdated desktops is helping sales to grow in mature markets, such as the U.S. and Europe.
“Replacements account for 60% of PC shipments worldwide and nearly 85% of U.S. shipments,” Shiffler said.
Despite the strong outlook, there’s still concern about the health of the economy overall.
The top three issues: a potential U.S. recession, the possibility of a sharp slowdown in China’s economy following the Beijing Olympics and the elevated price of oil, according to Gartner.
“Slowing gross domestic product growth can and does affect PC shipments through its impact on consumer incomes and business profits,” Shiffler said. “PCs are still far from being completely recession-proof.”
New Chief
Irvine telecommunications gear startup Aktino Inc. hired a chief executive.
Lonnie Martin, a telecom veteran with more than 35 years in the industry, is set to move to Orange County from Texas to be Aktino’s top guy.
Aktino has raised $27 million in two rounds of funding. Investors include Corona del Mar-based Miramar Venture Partners, Costa Mesa’s Innocal Venture Capital, Irvine’s Huntington Ventures and others.
Aktino sells equipment that increases the bandwidth of older copper wire networks.
It sells the gear to telephone companies, which can save money by getting the most out of the copper they already own without installing new fiber-optic cables.
Aktino has some 30 workers locally.
The privately held company doesn’t disclose sales. The Business Journal estimates it does around $8 million a year.
Martin, 60, was most recently chief executive of Dallas-based White Rock Networks Inc., an optical networking company that he founded in 1999 and ran until 2006.
White Rock declared bankruptcy in 2006 and was later bought by Petaluma-based Turin Networks Inc.
Aktino, which is Greek for “ray of light,” has flown under the radar for some time.
Some alums of PairGain Technologies Inc. formed the company in 2003.
One of its founders is Ray Nagele, a former product manager at Tustin-based PairGain, now part of Minneapolis-based ADC Telecommunications Inc.
Irvine-based Broadcom Corp.’s Henry Samueli helped start PairGain before moving on to form Broadcom with Henry Nicholas, who also worked at PairGain.
High-Octane Network
Aliso Viejo-based Octane, a trade group that promotes entrepreneurs, launched a business networking site geared at local professionals.
OCInnovationVault.com has links to a variety of tools, including job boards, universities, professional services and venture capital firms.
The site is geared toward linking up entrepreneurs and veterans in the technology and biomedical industries.
Geared to Gamers
Fountain Valley’s Kingston Technology Co., the top maker of memory for PCs and consumer devices, teamed up with Irvine’s Blizzard Entertainment Inc. for a flash memory drive geared at gamers.
Kingston’s DataTraveler HyperX flash drive is for “serious gamers who demand fast performance,” the company said in a statement.
It comes loaded with a free 10-day trial of Blizzard’s blockbuster online video game “World of Warcraft.”
The flash drive boasts fast data transfer speeds to handle heavy graphics.
“We have a terrific relationship with (Blizzard),” a Kingston spokesman said.
The question: is 10 days of playing long enough to get hooked?
It seems that way. “World of Warcraft” has some 10 million subscribers worldwide and has been translated into more than a dozen languages.
In December, Blizzard’s parent Vivendi SA struck a $19 billion deal to combine its video game business with Santa Monica-based Activision Inc.
