Gaining a lead in the fight to control the market for the next generation of flat-screen televisions, Sony is ready to launch the world’s first television using organic light-emitting diode (OLED) technology eventually for the Christmas market.

The company will start selling its 11-inch TV (just 3mm thick) on December 1 in Japan for Y200,000 ($1,700).

The company’s executives stated that the launch was proof the group was still one of the world’s most groundbreaking electronics companies despite the troubles with its PS3 games console and its defeat by Apple in the digital music player market.

Ryoji Chubachi, president, told the TV screen was evidence of the company’s technological back up in spite of opponents who laid claim that Sony was no longer developing products with mass appeal.

David Gibson, Macquarie’s analyst, said, “At such a low production rate, net revenues for Sony would be only 0.05 per cent of total revenues. We believe today's announcement is largely one of projecting that innovation at Sony is back while confirming that profits are some time away.”

Organic light-emitting diode technology is based on the capacity of assured organic chemicals to produce their own light when an electric current is passed. This entails that OLED need no backlight and can create crystal-clear effigies.

The costs for liquid-crystal display and plasma display TVs are coming down by around 25-30 per cent annually due to competition among Asian competitors, approaching consumer electronics groups to build up technology, which can be utilized in next-generation televisions.

Sony’s major competitor, Toshiba aspires to bring out a 20-inch OLED TV by next two years (2009). The two groups are already engaged in a ferocious battle over DVD formats.