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IBM Japan had a range of Kanji-character-enabled desktop computers, called the Multistations. This was part of that family with the addition of a greyscale LCD display. Although 5535 is the 'laptop' range of machines, With the sheer size and weight (7kg), I think you would consider it more like a 'space saving desktop', much like the IBM Convertible. It has a sibling called the 5535-S which has a slightly different design and is 'less boxy'.
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After the successes of the original note (1st Gen), the N23 (2nd Gen) and the N33 machines, two machines share the third generation space - the still-monochome MCA N51 and TFT Colour, ISA C23V.
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The N23 name comes from this machine's model type 5523. It was the second generation PS/55 Note (the 55xx series in Japan being similar to the Western PS/2 series). The first generation PS/55 Note didn't have room for both a floppy drive AND a hard drive, so you picked either as an option. The motherboard has the same EXCEL codename as the N33 16Mhz.
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This was the first mass-market (well - Japan!) IBM Notebook - specifically a seperate model line to the type 5535 laptop models, which is why they simply badged it with 'note'.
The first generation PS/55 notes had the type 5523-S0x