This is the HiPhone Nano N3+, a 2.8-inch touchscreen based with swivel screen cellphone. It's a Chinese clone of an Apple product that never happened, but which actually looks like it could have happened.
Sure it's not perfect and it lacks the finesse of Apple's designs—and I shiver thinking about the software this thing packs—but look at it. There are MacBooks in there. And iPod nanos and even part of the old iPod shuffle in that internal ring—not the one Heather tried to swallow.