This paper shall discuss the history of the American computer industry, as well as the market structure and utilize Porters Five Forces to analyze the industry. Although the computer industry has really begun to come into its own within the last few decades, its based on technology that has been evolving for more than 5,000 years. The different segments within the industry have a variety of market structures, from monopoly to monopolistic competition. And, within those structures with monopolistic competition, rivalry, buyer power, and supplier power are important factors in the ebb and flow of the industry.