There are color E-ink displays on the market, not to mention that manufacturer can add led backlight. The UI of X3 should be simple and there is no reason that E-ink won't handle it. Last technologies in E-ink and E-paper showed that color and backlight even with animation and video is possible. Also it should be better for battery life. E-ink is very efficient.
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The FiiO X3 Thread UPDATE: Project Back On! Read the First Post for Information. - Page 183
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