This is the Aquaphone concept by designer Bon-Seop Ku. Its interface consists of water bubbles that are manipulated by an electric current.
Sure, it's pretty impractical, and it would have a hell of a time displaying a text message or a webpage, but it sure is a striking design. I don't know why icons such as video camera and RSS feed are included, however, as clearly that'd be impossible. But for a straight phone that only makes calls, it could work, maybe.
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