The computer industry is capital intensive and technologically driven and can be divided into three main segments; the supercomputer, mainframe, and personal computer. There have been several factors that have impacted the computer industry , but none like the Internet. The Internet has helped to develop the growth in the PC segment, which is currently the most popular mechanism for gaining access to the Internet. As we enter the paperless age, people now do their banking, payment of bills, shopping, and communicating via email and video conferencing which is all done through their PCs. This new technology shifted the demand for PCs to the right as people wanted access to the new superhighway. Although the new demand increased revenue for several of the companies in the industry, it also attracted new entrants, which in turn lowered PC prices and began a decrease in economic profit . This, in turn, led many computer manufacturers to look for less expensive parts, which drove many of the component suppliers to move their manufacturing operations overseas in search of a cheaper labor force. The server segment, once a high margin market, is also becoming more computation.
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