Buying In Computers: Is It Worth It?

by David Jenyns on April 24, 2009

The potential for the computer industry is huge. In just 10 years between 1951 and 1960, sales of large-scale computers have grown to about $1.5 billion. Makers of giant computers like Sperry Rand have been under particularly heavy pressure because of heavy research and development expenditures.


Commanding over three-quarters of all business in the computer industry, IBM, of course, will be the chief beneficiary of the expected profit breakthrough. IBM has won this top recognition largely through its unique ability to buck the normal corporate pattern, accelerating growth despite its increased size. It is common knowledge that as company size increases, growth rate tends to slow. That has happened to all the so-called blue-chip companies. IBM’s annual growth rate of 20 per cent has dwarfed the nine percent of its two nearest competitors, Burroughs and National Cash Register.

There is no question that at their current price range, computers are still a quality or class market, which leaves computer makers free to tinker with their equipment and to improve it all along the line.

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