The first laptops successful on a large scale came in large part due to a Request For Proposal (RFP) by the U.S. Air Force in 1987. This contract would eventually lead to the purchase of over 200,000 laptops. Competition to supply this contract was fiercely contested and the major PC companies of the time; IBM, Toshiba, Compaq, NEC, and Zenith Data Systems (ZDS), rushed to develop laptops in an attempt to win this deal. ZDS, which had earlier won a landmark deal with the IRS for its Z-171, was awarded this contract for its SupersPort series. The SupersPort series was originally launched with an Intel 8086 processor, dual floppy disk drives, a backlit, blue and white STN LCD screen, and a NiCD battery pack. Later models featured an Intel 80286 processor and a 20MB hard disk drive. On the strength of this deal, ZDS became the world's largest laptop supplier in 1987 and 1988.

ZDS partnered with Tottori Sanyo in the design and manufacturing of these laptops. This relationship is notable because it was the first deal between a major brand and an Asian OEM (Original Equipment Manufacturer). At the time, Compaq, IBM, Toshiba, NEC, etc. all designed and manufactured their own machines. However, after the success of the ZDS offering other relationships, like Compaq and Citizen, soon followed. At this time the quality of Japanese engineering and manufacturing in conjunction with the strength of the dollar relative to the yen (typically about 130 Yen = $1) drove most brands to suppliers in Japan. Companies such as Sanyo, Tottori Sanyo, Citizen, and Casio were all heavily involved in this business as OEMs. However, by the mid-1990s a weakening dollar and the rising viability of Taiwanese OEMs such as Acer, Quanta, Compal, Twinhead, and Chicony lead the supply base to rapidly shift from Japan to Taiwan. Additionally, brands which were more nimble and relied less on internal engineering such as Gateway, Dell and Micron began to rise quickly to leadership positions. Combinations such as Dell/Compal and Gateway/Quanta eventually became powerhouse partnerships and greatly contributed to the prominence of Taiwanese OEMs as the center of PC manufacturing from about 1995 onward.

Another notable computer was the Cambridge Z88, designed by Clive Sinclair, introduced in 1988. About the size of an A4 sheet of paper as well, it ran on standard batteries, and contained basic spreadsheet, word processing, and communications programs. It anticipated the future miniaturization of the portable computer; and, as a ROM-based machine with a small display, can — like the TRS-80 Model 100 — also be seen as a forerunner of the personal digital assistant.

By the end of the 1980s, laptop computers were becoming popular among business people. The NEC UltraLite, released in mid-1989, was perhaps the first notebook computer, weighing just over 2 kg; in lieu of a floppy or hard drive, it contained a 2 megabyte RAM drive, but this reduced its utility as well as its size. The first notebook computers to include hard drives were those of the Compaq LTE series, introduced toward the end of that year. Truly the size of a notebook, they also featured grayscale backlit displays with CGA resolution.

The Macintosh Portable, Apple's first attempt at a battery-powered computer

The first Apple Computer machine designed to be used on the go was the 1989 Macintosh Portable (although an LCD screen had been an option for the transportable Apple IIc in 1984). Actually a "luggable", the Mac Portable was praised for its clear active matrix display and long battery life, but was a poor seller due to its bulk. In the absence of a true Apple laptop, several compatible machines such as the Outbound Laptop were available for Mac users; however, for copyright reasons, the user had to supply a set of Mac ROMs, which usually meant having to buy a new or used Macintosh as well.

The Apple PowerBook series, introduced in October 1991, pioneered changes that are now de facto standards on laptops, such as the placement of the keyboard, room for palm rest, and the inclusion of a built-in pointing device (a trackball). The following year, IBM released its Thinkpad 700C, featuring a similar design (though with a distinctive red TrackPoint pointing device).

Later PowerBooks introduced the first 256-color displays (PowerBook 165c, 1993), and first true touchpad, first 16-bit sound recording, and first built-in Ethernet network adapter (PowerBook 500, 1994).

The summer of 1995 was a significant turning point in the history of notebook computing. In August of that year Microsoft introduced Windows 95. It was the first time that Microsoft had placed much of the power management control in the operating system. Prior to this point each brand used custom BIOS, drivers and in some cases, ASICs, to optimize the battery life of its machines. This move by Microsoft was controversial in the eyes of notebook designers because it greatly reduced their ability to innovate; however, it did serve its role in simplifying and stabilizing certain aspects of notebook design. Windows 95 also ushered in the importance of the CD-ROM drive in mobile computing and initiated the shift to the Intel Pentium processor as the base platform for notebooks. The Gateway Solo was the first notebook introduced with a Pentium processor and a CD-ROM. By also featuring a removable hard disk drive and floppy drive it was the first three-spindle (optical, floppy, and hard disk drive) notebook computer. The Gateway Solo was extremely successful within the consumer segment of the market. In roughly the same time period the Dell Latitude, Toshiba Satellite, and IBM Thinkpad were reaching great success with Pentium-based two-spindle (hard disk and floppy disk drive) systems directed toward the corporate market.

A 1997 Micron laptop

As technology improved during the 1990s, the usefulness and popularity of laptops increased. Correspondingly prices went down. Several developments specific to laptops were quickly implemented, improving usability and performance. Among them were:

• Improved battery technology. The heavy lead-acid batteries were replaced with lighter and more efficient technologies, first nickel cadmium or NiCD, then nickel metal hydride (NiMH) and then lithium ion battery and lithium polymer.
• Power-saving processors. While laptops in 1991 were limited to the 80286 processor because of the energy demands of the more powerful 80386, the introduction of the Intel 386SL processor, designed for the specific power needs of laptops, marked the point at which laptop needs were included in CPU design. The 386SL integrated a 386SX core with a memory controller and this was paired with an I/O chip to create the SL chipset. It was more integrated than any previous solution although its cost was higher. It was heavily adopted by the major notebook brands of the time. Intel followed this with the 486SL chipset which used the same architecture. However, Intel had to abandon this design approach as it introduced its Pentium series. Early versions of the mobile Pentium required TAB mounting (also used in LCD manufacturing) and this initially limited the number of companies capable of supplying notebooks. However, Intel did eventually migrate to more standard chip packaging. One limitation of notebooks has always been the difficulty in upgrading the processor which is a common attribute of desktops. Intel did try to solve this problem with the introduction of the MMC for mobile computing. The MMC was a standard module upon which the CPU and external cache memory could sit. It gave the notebook buyer the potential to upgrade his CPU at a later date, eased the manufacturing process some, and was also used in some cases to skirt U.S. import duties as the CPU could be added to the chassis after it arrived in the U.S. Intel stuck with MMC for a few generations but ultimately could not maintain the appropriate speed and data integrity to the memory subsystem through the MMC connector.
• Improved liquid crystal displays, in particular active-matrix TFT (Thin-Film Transistor) LCD technology. Early laptop screens were black and white, blue and white, or grayscale, STN (Super Twist Nematic) passive-matrix LCDs prone to heavy shadows, ghosting and blurry movement (some portable computer screens were sharper monochrome plasma displays, but these drew too much current to be powered by batteries). Color STN screens were used for some time although their viewing quality was poor. By about 1991 , two new color LCD technologies hit the mainstream market in a big way; Dual STN and TFT. The Dual STN screens solved many of the viewing problems of STN at a very affordable price and the TFT screens offered excellent viewing quality although initially at a steep price. DSTN continued to offer a significant cost advantage over TFT until the mid-90s before the cost delta dropped to the point that DSTN was no longer used in notebooks. Improvements in production technology meant displays became larger, sharper, had higher native resolutions, faster response time and could display color with great accuracy, making them an acceptable substitute for a traditional CRT monitor.
• Improved hard disk technology. Early laptops and portables had only floppy disk drives. As thin, high-capacity hard disk drives with higher reliability and shock resistance and lower power consumption became available, users could store their work on laptop computers and take it with them. The 3.5" HDD was created initially as a response to the needs of notebook designers that needed smaller, lower power consumption products. With continuing pressure to shrink the notebook size even further, the 2.5" HDD was introduced.
• Improved connectivity. Internal modems and standard serial, parallel, and PS/2 ports on IBM PC-compatible laptops made it easier to work away from home; the addition of network adapters and, from 1997, USB, as well as, from 1999, Wi-Fi, made laptops as easy to use with peripherals as a desktop computer.

Parts

Hard disk from a Dell Latitude

• Most modern laptops feature 12 inch (304.8 mm) or larger active matrix displays with resolutions of 1024×768-pixels and above, and have a PC Card (formerly PCMCIA) or ExpressCard expansion bay for expansion cards. Internal hard disks are physically smaller –2.5 inch (63.5 mm)– compared to the standard desktop 3.5 inch (88.9 mm) drive, and usually have lower performance and power consumption. Video and sound chips are usually integrated. This tends to limit the use of laptops for gaming and entertainment, two fields which have constantly escalating hardware demands. However, higher end laptops can come with dedicated graphics processors, such as the Dell Inspiron E1505 and E1705, which can be bought with an ATI Mobility Radeon X1300 or similar. These mobile graphics processors tend to have less performance than their desktop counterparts, but this is because they have been optimized for lower power usage.
• There is a wide range of laptop specific processors available from Intel (Pentium M, Celeron, Intel Core and Intel Core 2) and from AMD (Athlon, Turion 64, and Sempron) and also from VIA (C3 and C7-M). Motorola and IBM developed and manufactured the chips for the former PowerPC-based Apple laptops (iBook and PowerBook). Generally, laptop processors are less powerful than their desktop counterparts, due to the need to save energy and reduce heat dissipation. However, the PowerPC G3 and G4 processor generations were able to offer almost the same performance as their desktop versions, limited mostly by other factors, such as the system bus bandwidth; recently, though, with the introduction of the G5s, they have been far outstripped. At one point, the Pismo G3, at up to 500 MHz, was faster than the fastest desktop G3 (then the B&W G3), which ran at 450 MHz.

Some parts for a modern laptop have no corresponding part in a desktop computer:

• Current models use lithium ion and more recently lithium polymer batteries, which have largely replaced the older nickel metal-hydride technology. Typical battery life for most laptops is two to five hours with light-duty use, but may drop to as little as one hour with intensive use. Batteries gradually deteriorate over time and eventually need to be replaced in one to five years, depending on the charging and discharging pattern.
• Docking stations became common laptop accessories in the early 1990s. They typically were quite large and offered 3.5" and 5.25" storage bays, one to three expansion slots (typically AT style), and a host of connectors. The mating between the laptop and docking station was typically through a large, high-speed, proprietary connector. The most common use was in a corporate computing environment were the company had standardized on a common network card and this same card was placed into the docking station. These stations were very large and quite expensive. As the need to additional storage and expansion slots became less critical because of the high integration inside the laptop itself, the emergence of the Port Replicator as a major accessory commenced. The Port Replicator was often a passive device that simply mated to the connectors on the back of the notebook and allowed the user to quickly connect their laptop so VGA, PS/2, RS-232, etc. devices were instantly attached. As higher speed ports like USB and Firewire became commonplace, the Port Replication was accomplished by a small cable connected to one of the USB 2.0 or FireWire ports on the notebooks. Wireless Port Replicators followed.
• Virtually all laptops can be powered from an external AC converter. This device typically adds half a kilogram (1 lb) to the overall "transport weight" of the equipment.
• A pointing stick or touchpad is used to control the position of the cursor on the screen. The pointing stick is usually a rubber dot that is located between the G, H and B keys on the laptop keyboard. To navigate the cursor, pressure is applied in the direction intended to move. The touchpad is touch-sensitive and the cursor can be navigated by moving the finger on the pad.