The computer industry

The manufacture, development, sales, and servicing of computer hardware and software make up one of the largest and most important industries in the world. Governments, institutions, and virtually all industries rely upon computers. By the year 2000, the computer industry is expected to be the second largest industry in the world in terms of annual revenue. Only agriculture will be larger.

The first commercial digital computers were manufactured in the 1950's. Throughout the 1950's, as the importance of computers increased, people's acceptance of them increased as well. More than 10,000 computers were in operation by 1961. Ten years later, the number of computers exceeded 100,000. By 1990, there were about 100 million data-processing computers--that is, computers that require input and output equipment--in operation worldwide.

The United States has the largest computer industry in the world, employing more than 1 million people. It also has more computers than any other country--more than 50 million, or about half the world's computers. Japan ranks second with more than 9 million computers, about 11 per cent of the world total. European countries account for nearly 25 per cent of all computers.

The economic growth of the computer industry has matched the increase in the number of computers. The United States produced about $1 billion worth of computers in 1958. Ten years later, the figure had reached $4.8 billion. By 1978, United States manufacturers produced more than $16.6 billion worth of computer equipment each year.

In the late 1970's, the computer industry's rate of growth increased dramatically. Advances in both computer technology and manufacturing technology enabled the United States to sell computers worth more than $30 billion in 1981. By 1990, the U.S. computer industry's annual revenues had topped $100 billion, and they continued to grow.

Manufacturing. From a few dozen companies in the early 1960's, the computer industry has grown to more than 10,000 firms around the world. These companies manufacture computers and such peripheral equipment as modems and printers. They also develop and publish software and provide various computer supplies, such as magnetic disks.

Some companies produce entire computer systems, ranging from personal computers to supercomputers. A large number of companies manufacture computer components, including processors. Some companies produce input and output equipment, such as terminals and printers. Other important products of the computer industry include equipment that increases a computer's abilities to provide visual and audio output, and the network boards and cables used to create computer networks.

The largest computer manufacturer in the United States--and the world--is International Business Machines Corporation (IBM). By the late 1980's, IBM's annual sales had topped $50 billion. Digital Equipment Corporation (DEC) ranks second in the United States, with more than $9 billion in sales in 1988. Unisys is the third largest U.S. manufacturer, with more than $7 billion in annual sales in the late 1980's. Other leading U.S. computer companies include Apple, Compaq, Cray, Tandy, and Zenith.

The largest computer manufacturer outside the United States is Japan's Fujitsu, followed closely by NEC Corporation, also of Japan. Each company had sales of more than $9 billion in 1988. The leading computer companies in Europe include Groupe Bull of France, Italy's Olivetti, and Siemens AG of Germany.

Research and development. The constant increase in computer power is a major reason for the computer industry's success. Such increases in power result from computer science research and development, which take place at businesses and universities throughout the world.

One area of great interest to computer researchers and manufacturers is memory speed and capacity. As software becomes more complex, it requires more computer memory in order to operate properly. At the same time, sophisticated software can manipulate increasingly large amounts of data, which occupy more space in the computer's memory.

The storage of information files is another important area of study. Researchers work to develop increasingly compact ways to store data, such as on magnetic disks, compact discs, or other devices.

Artificial intelligence is an exciting area of software research. Experts in this field design computer systems to perform tasks that appear to require intelligence, such as reasoning and learning. In this manner, artificial intelligence experts hope to increase the ability of computers to respond to problems in a "human" manner. See ARTIFICIAL INTELLIGENCE.

Sales. Computers are sold in a variety of ways. Large manufacturers of computers have teams of sales professionals. These teams call on corporations and institutions, analyse their needs, and provide the appropriate combination of hardware and software. Some companies purchase computer systems and components from a variety of sources. They assemble the components and then sell the finished products to computer users.

Retail outlets play an increasingly important role in the sale of personal computers. Chains of computer stores sell many personal computers. Some general merchandise stores also sell computers, programs, and various accessories.

Service and repair. Because people depend on their computers, it is important to have the machines serviced periodically and repaired promptly when necessary. Many computer manufacturers offer service contracts that provide for regular maintenance and prompt repairs. When a large computer system breaks down, service technicians must visit the computer itself. Some large businesses and institutions have their own computer maintenance staffs.

Many retail outlets that sell personal computers also offer repair service to their customers. These retailers allow their customers to bring computers back to the shop for servicing or repairs.

Careers. There are many career opportunities in the computer industry. Computer engineers are probably the most technically specialized computer experts. Hardware engineers design the circuits that are engraved on chips, and they develop and design the wiring that lets information flow smoothly through the computer. Engineers also design the technical aspects of memory, file storage, and peripheral equipment.

Computer programmers write the instructions that make computers operate properly. Systems analysts determine the most efficient use of computers for a particular situation. They study entire computer systems--hardware and software--and the purpose a computer is intended to serve.

Software publishers make up another career area. People in this field issue programs, write and edit instruction manuals, and provide technical services for customers.

Many career opportunities in computers exist outside the computer industry itself. For example, data processors enter information into computers. Workers in many industries oversee the computers that control machines.

Some of the industry's most successful individuals are self-taught. But most computer careers call for a college degree. College courses that help prepare students for careers in computers include programming, electronics, systems analysis, and data processing.

Development of computers (Next)