This is an amazing video. Though this effect is not real, its amazing to see how iPhone can display 3D image:
iHologram - iPhone application from David OReilly on Vimeo.
Here is what David OReilly as to say - The application works by assuming a constant viewing angle (35-45 degrees), typical for when the device is placed on a tabletop. The 3d scene’s perspective is then warped using anamorphic perspective, making the object appear to jump off the screen.
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