The Kaypro 16 is very similar in appearance to the Kaypro 10, the main difference of the Kaypro's 16 was that it had an 8088 processor and 256 KB of RAM and ran on the MS-DOS operating system instead of CP/M. The Kaypro 16/2nd was a "Bundle" for a computer school. It came with Dos 3.3, 2 5.25" 360k floppy drives and 768K Ram and bundles of software to complete the college course.
In late 1984, Kaypro introduced its first IBM PC compatible, the Kaypro 16 transportable. While admitting that "it's what our dealers asked for", the company said it would continue to manufacture its older computers. This was followed by other PC-compatible devices: the Kaypro PC, Kaypro 286i (the first 286 IBM PC AT-compatible), the Kaypro 386, and the Kaypro 2000 (a rugged aluminum battery-powered laptop with a detachable keyboard). The slow start in the IBM clone market would have serious consequences for the company.