From the photos of the phone at the Tianjin Mobile Phone exhibition you can see it's a chunky candybar with the pico-projector beneath a lens on the top end. Apparently it's a 640 x 480 resolution projector with manual focus, a picture size up to 30-inches and the battery can give it about two hours of projection time. The LED light source must generate a fair whack of heat, since the phone is punched full of holes at the projector end, presumably so that it doesn't collapse into a molten heap of parts.
Pretty interesting, but really, you've got to laugh at the phone's UI: looks like OS X, doesn't it? Though this looks like a real product, there's no info on whether we'll see it outside China's borders. [163.com]