IBM PC compatible computers are similar to the original IBM PC, XT, and AT, all from computer giant IBM, that are able to use the same software and expansion cards. Such computers were referred to as PC clones, IBM clones or IBM PC clones. The term "IBM PC compatible" is now a historical description only, since IBM no longer sells personal computers after it sold its personal computer division in 2005 to Chinese technology company Lenovo. The designation "PC", as used in much of personal computer history, has not meant "personal computer" generally, but rather an x86 computer capable of running the same software that a contemporary IBM PC could. The term was initially in contrast to the variety of home computer systems available in the early 1980s, such as the Apple II, TRS-80, and Commodore 64. Later, the term was primarily used in contrast to Apple's Macintosh computers.

Home computers were a class of microcomputers that entered the market in 1977 and became common during the 1980s. They were marketed to consumers as affordable and accessible computers that, for the first time, were intended for the use of a single, non-technical user. These computers were a distinct market segment that typically cost much less than business, scientific, or engineering-oriented computers of the time, such as those running CP/M or the IBM PC, and were generally less powerful in terms of memory and expandability. However, a home computer often had better graphics and sound than contemporary business computers. Their most common uses were word processing, playing video games, and programming.