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Xerox PARC in the early 1970s.

The first commercially available portable computer was the Osborne 1 in 1981, which used the CP/M operating system. Although it was large and heavy compared to today's laptops, with a tiny CRT monitor, it had a near-revolutionary impact on business, as professionals were able to take their computer and data with them for the first time. This and other "luggable" were inspired by what was probably the first portable computer, the Xerox Note Taker, developed at Xerox PARC in 1976; however, only ten prototypes were built. The Osborne was about the size of a portable sewing machine, and importantly could be carried on a commercial aircraft. However, it was not possible to run the Osborne on batteries; it had to be plugged in.

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A more enduring success was the Compaq Portable, the first product from Compaq, introduced in 1983, by which time the IBM Personal Computer had become the standard platform. Although scarcely more portable than the Osborne machines, and also requiring AC power to run, it ran MS-DOS and was the first true IBM clone. (IBM's own later Portable Computer, which arrived in 1984, was notably less IBM-compatible than the Compaq.)

Another claim to be the "first laptop" was made by a novice programmer Thomas Kelly in 1982. While it was made to be used upon one's lap, it weighed 150 pounds, and therefore could not be deemed truly portable.

However, arguably the first true laptop was the GRiD Compass 1101, designed by Bill Moggridge in 1979, and released in 1982. Enclosed in a magnesium case, it introduced the now familiar clamshell design, in which the flat display folded shut against the keyboard. The computer could be run from batteries, and was equipped with a 320×200-pixel plasma display and 384-kilobyte bubble memory. It was not IBM-compatible, and its high price (US$ 10,000) meant that it was limited to specialized applications. However, it was used heavily by the U.S. military, and was used on the Space Shuttle during the 1980s. The GRiD company subsequently earned significant returns on its patent rights as its innovations became commonplace. GRiD Systems Corp was later bought by Tandy (RadioShack).

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Two other noteworthy early laptops were the Sharp PC-5000 (1983) and the Gavilan SC, announced in 1983 but first sold in 1984. The Gavilan was notably the first computer to be marketed as a "laptop." It was also equipped with a pioneering touchpad-like pointing device, installed on a panel above the keyboard. Like the GriD Compass, the Gavilan and the Sharp were housed in clamshell cases, but they were partly IBM-compatible, although primarily running their own system software. Both had LCD displays, and had optional printers that attached to their cases.

1983 also saw the launch of what was probably the biggest-selling early laptop, the Kyocera Kyotronic 85. Although it was at first a slow seller in Japan, it was quickly licensed by Tandy Corporation, Olivetti, and NEC, who saw its potential and marketed it as the Olivetti M-10, NEC PC-8201, and [1] Radio Shack TRS-80 Model 100 line or Tandy 100. The machines ran on standard AA batteries. The Tandy's internal programs, including a BASIC interpreter, a text editor, and a terminal program, were supplied by Microsoft, and are thought to have been written in part by Bill Gates himself. The computer was not a clamshell, but provided a tilt able 8×40-character LCD screen above a full-travel keyboard. With its internal modem, it was a highly portable communications terminal. Due to its portability, good battery life (and ease of replacement), reliability (it had no moving parts), and low price (as little as US $300), the model was highly regarded, becoming a favorite among journalists. It weighed less than 2 kg (4 lb) with dimensions of 30 x 21.5 x 4.5 cm (12 x 8.5 x 1.75 inches). Initial specs included 8 kb of RAM (expandable to 24 kb) and a 3 MHz processor.

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Among the first commercial IBM-compatible laptops were the IBM PC Convertible, introduced 1986, and the Toshiba T1000 and T1200, introduced 1987. Although limited floppy-based DOS machines (the operating system was stored in ROM), the Toshiba machines were small and light enough to be carried in a backpack, and could be run off lead-acid batteries. These also introduced the now-standard "resume" feature to DOS-based machines; the computer could be paused between sessions, without having to be restarted each time.

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

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 with standard drives were the Compaq LTE series, introduced toward the end of that year. Truly the size of a notebook, they had hard drives and standard-resolution screens.

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). Another "luggable," rather than laptop, 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.

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The Apple PowerBook series, introduced in 1991, heralded many changes that are now standard on laptops, including ergonomic improvements such as the placement of the keyboard at the back of the machine, thus creating a palm rest, and the inclusion of a built-in pointing device (a trackball). The following year, IBM released its Thinkpad series, offering similar miniaturization.

Later PowerBooks introduced the first 256-color displays, first true touchpad, and first built-in Ethernet networking.

As technology improved during the 1990s, the usefulness and popularity of laptops increased while prices went down. Several developments specific to laptops were quickly implemented in their design, improving their usability and performance compared to desktop computers. Among them were:

Improved battery technology. The heavy lead-acid batteries were replaced with lighter and more efficient technologies, first nickel metal hydride (NiMH) and then lithium ion and lithium polymer.
Power-saving processors. While laptops in 1991 were limited to the slower 80286 processor because of the energy demands of the more powerful 80386, the introduction of the Intel 386SX processor, designed for the specific power needs of laptops, marked the point at which laptop needs were included in processor design.
Improved liquid crystal display design, in particular active-matrix display technology, and increasingly, color screens. Early laptop screens were black and white or grayscale passive-matrix LCD displays prone to heavy shadows and blurry movement (some portable computer screens were sharper monochrome plasma displays, but these drew too much current to be powered by batteries). Improvements in production technology meant displays became larger, sharper, had higher display resolution, and could display color with great accuracy, making them an acceptable substitute for a traditional CRT monitor.
Improved hard disk technology. Early laptops 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.
Improved interconnectivity. 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 Ethernet networking ports and, from 1997, USB, and from 1999, Wi-Fi, made laptops as easy to use with peripherals as a desktop computer.

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In 2005, faculty members from the MIT Media Lab including Nicholas Negroponte introduced the $100 laptop as part of the One Laptop Per Child project. The aim is to design, manufacture, and distribute laptops that are sufficiently inexpensive to provide every child in the world access to knowledge and modern forms of education. The laptops will be sold to governments and issued to children by schools on a basis of one laptop per child. These machines will be rugged, Linux-based, and so energy efficient that hand-cranking alone will generate sufficient power for operation. Ad-hoc wireless mesh networking may be used to allow many machines Internet access from one connection. The pricing goal is to start at $100 and then steadily decrease.

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