The Model 1 had a list price of $3999 USD and was equipped with a 12 MHz Intel 80286, 640 KB of RAM, 1.2 MB 5.25" floppy drive, and a 10" amber colored gas-plasma display.

[1] The Portable III was designed to be the smallest, lightest and fastest 386 machine, since Compaq was under the pressure from Toshiba with its T1100 and T3100 and Zenith Data Systems with its Z-181.

The most remarkable feature was its gas plasma display which lifted up and swiveled so that it could be placed in a good position for reading.

[4] The Portable III lacked the internal expansion ports of previous Portables and desktop PCs of the time, but Compaq offered an optional external expansion unit (model 2662A), that provided two full length, 16-bit ISA add-in cards[1] for $199.

Because it gets its power from the computer via this port, it could be securely attached it to the Portable III, and carried as if it were part of the machine.