The first commercial LEDs were commonly used as replacements for incandescent and neon indicator lamps, and in seven-segment displays, first in expensive equipment such as laboratory and electronics test equipment, then later in such appliances as TVs, radios, telephones, calculators, as well as watches (see list of signal uses). Until 1968, visible and infrared LEDs were extremely costly, in the order of US$200 per unit, and so had little practical use. The Monsanto Company was the first organization to mass-produce visible LEDs, using gallium arsenide phosphide (GaAsP) in 1968 to produce red LEDs suitable for indicators. Hewlett Packard (HP) introduced LEDs in 1968, initially using GaAsP supplied by Monsanto. These red LEDs were bright enough only for use as indicators, as the light output was not enough to illuminate an area. Readouts in calculators were so small that plastic lenses were built over each digit to make them legible. Later, other colors became widely available and appeared in appliances and equipment. In the 1970s commercially successful LED devices at less than five cents each were produced by Fairchild Optoelectronics. These devices employed compound semiconductor chips fabricated with the planar process invented by Dr. Jean Hoerni at Fairchild Semiconductor. The combination of planar processing for chip fabrication and innovative packaging methods enabled the team at Fairchild led by optoelectronics pioneer Thomas Brandt to achieve the needed cost reductions. These methods continue to be used by LED producers.

What was the first commercial uses of LEDs?