puter industry's diversity. IBM's core business includes software, personal computers, maintenance, mainframe hardware, minicomputers, rental/finance, storage products, and printers. The company's new efforts include services, component technology, and workstations.
The computer industry plays an important role in the economy of the United States. Annual revenues are estimated at $350 billion (U.S. Congress, 1993, p. 1). Despite the international scope of the computer marketplace, the leading firms, particularly in the software, personal computer, and microprocessing sectors, are located in the United States.
The computer software industry is the fastest growing major industry in the United States. Annual revenues for 1992 are estimated at $36.7 billion (U.S. Congress, 1993, p. 10). The undisputed leader in the operating software business is Microsoft. Other competitors in this market are IBM, Novell, Apple, Sun Microsystems, NeXT, and a consortium of Japanese companies such as Matsushita and Sony.
The microprocessing segment of the computer industry is also dominated by one major player--Intel. In 1993, Intel captured 83 percent of the microprocessor market. Its closest competitor was Motorola with 6 percent of the market. Advanced Micro Devices (AMD) Cyrix, and Texas Instruments (TI) held 5 percent, one percent, and one percent of the market, respectively. In 1993, Intel's sales rose 50 percent to $8.8 billion (The computer industry, 1994, p. C8).
Unlike the operating software and microprocessing sectors of the industry, no single personal computer manufacturer has a dominant share of the market. The U.S. personal computer sector is characterized by a handful of major manufacturers and over 300 smaller manufacturers (U.S. Congress, 1993, p. 65). In 1992, the personal computer industry generated approximately $40 billion in revenues (U.S. Congress, 1993, p. 74).
The applications software industry is...