As of this writing there are three projector technologies on the market. The two most common technologies associated with a portable digital projector are LCD (liquid crystal display) and DLP (digital light processing). DLP projectors tend to have better contrast and better black levels, while the LCD counterparts have better color saturation, usually less fan noise, and operate at a lower temperature.
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There are some differences between a portable digital projector that is LCD and one that is DLP. These differences should be taken into consideration when deciding which projector would best suit your needs. DLP projectors produce images by using a color wheel which can sometimes cause a "rainbow effect". This effect will cause some people to see a momentary flash of color. DLP projectors that use faster color wheels have minimized this effect, but have not totally eliminated it.
Placement in relation to the screen can also be more tricky with a DLP projector than with a LCD. However, LCD projectors have an issue known as a "screen door effect" where images appear as if being viewed through a screen. Overall opinion is that the DLP projector has the advantage because it produces a more cinematic image, while the LCD version is a bit better priced and less costly.
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Another technology, LCoS (liquid crystal on silicon) is more of a newcomer than the DLP or LCD versions and is quickly gaining popularity. LCoS projectors create a very good image and do not suffer from the rainbow or screen door effect. Initially, LCoS theater projectors cost between $10,000 and $15,000. Although recent technological advances have helped lower the price of these projectors, they are still a bit higher priced than either DLP or LCD models. It is not difficult to find LCoS portable digital projectors priced under $2,000.
Although you can usually feel confident buying from most of the reputable brand names out there, knowing certain facts can be very helpful when shopping for any portable digital projector [http://www.portabledigitalprojector.org]. Obviously, the ultimate decision will be dictated by your needs and your budget.