Viennese computer scientist Daniel Wagner has figured out a way to show a virtual character on an i-mate SP5 cellphone, and when you move around with the cellphone, it appears that you're floating around this virtual character in 3D. Other people with cellphones can also see this character from their points of view. Augmented reality, indeed.
Until now AR is usually done with expensive hardware using HMDs and PCs or notebooks for mobile setups. We focus in our work on using low-cost, mobile hardware that people ideally already possess (PDAs, mobile phones), because we believe that this is one of the few chances how AR can leave research labs and go into public.
Take a look at this video demo, which really shows you what's happening here:
Augmented Reality on i-mate SP5 [Mobility Site]