On the basis of purpose of use the computer can be classified into:
1. Special Purpose Computer
2. General Purpose Computer
Special purpose computer is tailor-made solely to cater to the requirements of a particular task or application, for example, weather forecasting. It incorporates the instructions needed into the design of internal storage so that it can perform the given task on a simple command. It, therefore, does not possess unnecessary options, and costs less.
The general-purpose computer is designed to meet the needs of many different applications. The instructions needed to perform a particular task are not wired permanently into the internal memory. When one job is over, instructions for another job can be loaded into the internal memory for processing. Thus, a general-purpose machine can be used to prepare paybills, manage inventories, print sales reports, do scientific calculations and so on.