How does it work? The RePhone project actually comprises of a very small circuit board that comes complete with a SIM slot, and there is also an optional screen. Not only that, it supports Bluetooth connectivity to boot, and there is the $49 Kit Create which happens to be a diminutive system like a watch that will boast of a small case and its accompanying modules.
In other words, you end up with a small yet functional cellphone for less than $50. It will rely on programming libraries in Arduino IDE, Lua and Javascript which enables one to hook up to the Internet. Sort of like having access to your very own open source and modular phone, albeit at a very cheap price point.