While most portable projectors are single-chip DLP models, the Epson EF12 is a three-chip LCD unit. The EF12 and its little brother, the EF11, are the smallest 3LCD laser projectors that Epson has ever produced.
Due to the spinning color wheel used in most single-chip DLP projectors, they can only display one color element (red, green, or blue) at a time. This sometimes causes the rainbow effect (color breakup), momentary flashes of blue, green, and red shadows. The rainbow effect is an absolute deal-breaker for someone who is highly discerning because it is distracting when watching movies, TV, and playing video games.
3LCD projectors like the EF12 project the red, green, and blue elements of the image simultaneously, so the rainbow effect to wholly eliminated. Another benefit of 3LCD is its ability to produce accurate colors while maintaining excellent color brightness.