So the jury is out on the Apple iPhone 4S. Those who were expecting a radical redesign are obviously disappointed, but it is clear that this is a sensible evolution from what has (in spite of its antenna problems) been a very well received mobile. That eight mega pixel camera, HD 1080p video recording and smoother processor at least mean that the new iPhone keeps pace with its Android rivals

One of the key enhancements is the speed at which the phone can access data. According to Apple 'data can now download up to 2x as fast. The theoretical max performance of the iPhone used to be 5.8Mbps up and 7.2Mbps down -- it has now been doubled to almost 14.4Mbps down.'

This was illustrated by a slide that highlighted the maximum data speeds of the iPhone and rivals like the Motorola Atrix and HTC Inspire 4G.

So does that mean that the new iPhones run on 4G networks? Well much depends on your definition of 4G.

All sorts of networks and handsets are currently available which purport to offer 4G services. Though none of them really offer 4G as we will understand it in say five years time.

And Apple's new handset runs on an enhanced 3G format called HSPA+. This is called 4G by AT&T (one of the US networks that has the iPhone) but not by anyone else. Also HSPA+ 14.4 phones typically really only run on real world speeds 1.5 to 2 Mbps. Contrast this with the service offered by Verizon which uses an early form of LTE (Long Term Evolution) 4G technology. It can deliver data speeds five times faster than HSPA+ and sometimes even faster.

The iPhone 4S that will run on Verizon and Sprint won't even be able to access HSPA+ and will have mobile data speeds akin to standard 3G phones.

So what about the UK? Well Three is committed to rolling out a HSPA+ 14.4 network and hopes to have it across most of the UK by the end of the year. Vodafone has HSPA+ in most of its key urban areas as has 02. So the iPhone 4S should in theory run at improved data speeds on those networks. The other networks are running a little behind but planning to catch up shortly.

So to sum up then in the US the iPhone 4S will be able to compete with handsets like the the Motorola Atrix and HTC Inspire 4G on AT&T's HSPA+ network, and in theory will be quicker on Three, Vodafone and O2 in the UK. But if you want to see some real smoking 4G action you need to see the Motorola Droid Bionic on Verizon's 4G LTE network.

Underneath is a quick primer on 4G from earlier this summer.

What is 4G?

You may have been able to figure this bit out from the name alone; 4G represents the fourth generation of cellular communications standards, following on from 3G, and 2G before even that. In theory, 4G should allow for drastically faster cellular data speeds, perhaps as much as 10x as fast, which would allow for far faster download and upload speeds from mobile devices.

4G will deliver speeds of 100 Mbps for mobile applications and 1 Gigabit per second for fixed networks, making regular home broadband look snail-paced in comparison. In an age where downloading films, music and applications on mobiles is becoming increasingly prevalent, with higher-quality file types resulting in ever-growing file sizes, 4G will let streaming and downloading whilst on the go become a smooth, stress-free experience.

Are there different forms of 4G?

Yes there are. Long Term Evolution Advanced (LTEA) and WiMAX Release 2 are the 4G services which the International Telecommunication Union (ITU) have classified as true 4G. In a format war similar to Betamax and VHS, it's hard to say which of the two 4G forms will be dominant, though LTEA seems to edging ahead at this early stage.

For instance, Verizon and AT&T both agree that; "LTE provides a more natural upgrade for [their] GSM/UMTS/HSPA/CDMA-based networks and subscribers - and GSM is the dominant mobile standard worldwide, with more the 3 billion global customers as of February 2010."

Can I get a 4G connection yet?

In the UK no, and that's unlikely to change until 2014/15 at the earliest. OFCOM are still divvying up the 4G spectrum in Blighty.

In the United States, the answer is yes via Verizon's LTE network. This isn't fully flavoured 4G as we will come to know it, but it does deliver very quick data download speeds. Even on slow days phones like the Motorola Droid Bionic work at a minimum of 10Mbps that's at least 10 times faster than 3G handsets.

T-Mobile and Sprint both claim to offer 4G connections in the USA, the truth of the matter is that these are more like 3.5G connections, as they are built upon HSPA+ (not LTEA or WiMAX Release 2) technology. They'll be upgradeable to true 4G once the network technology becomes available though.

When will the "true 4G" networks be available?

4G is a significant investment for the networks, with a complex array of antennas, towers and other such infrastructure to put in place before we will see the true 4G download speeds of 100 Mbps that the ITU categorise as real 4G. To that end, you're probably looking at 3 to 4 years, with some less-well-funded networks possibly never offering 4G connectivity.

Is it worth me buying a 4G phone then?

Not if you are in the UK. By the time the true 4G networks arrive, this first wave of 4G-enabled handsets may look quite aged.

Several years ago, when the iPhone was a mere twinkle in Steve Jobs' eye, Motorola launched an iconic new handset called the Razr. It was startlingly thin for a mobile, looked absolutely incredible and was soon the number one handset for any self-respecting gadget lover, celeb or fashionista.

But within a couple of years the Razr had become the uncoolest phone on the planet. Motorola had made so many of them and offered it in so many different guises that gadget-lovers, fashionistas, celebs and quite possibly your grandmother had moved on.

So why am I mentioning the Razr now? Well it is clear that Apple has a very aggressive strategy for its handsets and that means it is offering the 4S (which to be honest doesn't look like much of leap forward), along with reducing the price of its older handsets, in a bid to expand its reach. I just wonder if the iPhone, like the Razr before it, might just become a little too ubiquitous.

In some ways this is a strategy that Apple has to adopt. It is starting to feel the pinch from low cost, but better specified than the iPhone, Android models and will soon be contending with Nokia Windows handsets that may turn out to be a lot cooler than most of us are expecting. But I do think that when everyone on your bus has an iPhone, and I mean if you live in Northampton rather than North London, the phone itself might start to feel a little uncool.

Of course Apple has been here before with the iPod. Over its existence it went from the preserve of Apple fanboys to a music player that almost everyone in the UK seemed to have. Did it ever become uncool? Well kind of. The difference between the iPod and the iPhone is that the iPod never really had any serious competition (except maybe in its early days from Sony). If the iPhone ever becomes the handset of choice of your grandma then you have lots of other places to go. This has already happenned a little in the UK with the rise of the Blackberry among young urban kids. There are many reasons why kids lust after Blackberrys rather than iPhones, but the fact that the iPhone has become so ubiquitous among their peer group has clearly helped sell a few devices for RIM.

The reason why Apple execs probably aren't too worried is that the iPhone app market is still so far ahead of its rivals. Also I think this might be the last time we see a minor tweak to the iPhone. You can bet on some serious surgery next time (like the move from the iPod classic to the touch) or else that device will start to look a little passe.

Pic from Gdgt

So we now have the iPhone 4S with some significant enhancements. But I have a feeling that the thing that might get people in the stores to buy it is actually Siri. In case you missed it Siri is Apple's voice command system. You can use it to control the iPhone to find out what the weather, find out things from Wikipedia and most importantly of all use it to create text messages and emails.

Sounds great. But the odd thing is this is yet another example of innovating years after everyone else and then perfecting an application and repackaging it.

Pretty much all Siri's features have been available on the iPhone using apps like Vlingo. Siri itself had been available for well over a year before Apple bought the company in 2010, all they are doing now is incoporating it into the OS as a key feature. I remember writing this as far back as February 2010.

Similar systems are not just available for the iPhone, but on other handsets too and have been so since 2008. Even before that companies like the sadly missed Spinvox were experimenting with email and blog post via voice.

In the same way that Apple offered us Facetime - basically video calling which has been available and hardly used in the UK since 2003 - we are getting old features recycled.

Of course Apple's genius is that 1, it will work and work well and 2, millions of fanboys will think it is something new and innovative.

The potential fly in the ointment for Siri is that voice command systems are notoriously picky about accents. Siri never crossed the pond and it may still only be a US-product. UPDATE Looks like it will be UK after all.

Interestingly Vlingo has proved a lot more popular in the UK than it did in the US. So maybe Americans are quite as keen on voice control systems as Apple thinks. Also there are some pretty negative reviews of Siri on the iTunes site. Let's hope that the new version is much improved.

Finally

Great spot by the team at 9to5Mac who noted the early arrival of the iPhone 4S on Apple's Japanese website.

The interesting part is that the phone will retail for 10,800 yen, which is apparently 30% cheaper than the iPhone 4. So maybe those rumours about an cheaper iPhone to take on the Android handsets is bang on.

The phone will be available in both black and white.

Story here

The web is awash with iPhone rumours but we are going to take this one seriously. The Guardian has just posted that there are two new iPhones on their way - the iPhone 5 and an upgraded 4 - and they will be on sale in the UK on October 14th.

A 'source' told the paper.

"All we know is, there will be two devices, we will put our pricing in to Apple as soon as Tim Cook goes on stage, and we hope to get agreement to announce prices on Thursday," said a source at one UK operator, who also confirmed the 14 October shipping date.

According to The Guar the other big news is that all five UK networks will have access to the new phones on day one. Carphone Warehouse is understood to have done a deal directly with Apple for the first time, which means it will be able to sell phones "unlocked" - free from contracts with particular networks.

Well as rumours go this sounds pretty on the money. We'll find out soon enough

So, not long to go now. As you all know there's a new iPhone coming on Tuesday and you can read all the gossip about it here.

It is incredible to think that the iPhone is in fact only four years old (well six if you include Apple's first attempt at a handset with Motorola, the not very-loved Rokr).

Anyhow, here then is a quick whizz through the history of the iPhone which highlights all the key changes to its design and functionality.

For better or for worse (I actually think it is more the former than the latter) whenever something good happens online or as an app brands want to get involved. No self-respecting company now is without a Facebook or Twitter account and some have even dabbled with Tumblr and I bet it won't be long before we see brands on Jux.

So it is no surprise then savvy brands are all over Instagram, the popular 'fast, beautiful and fun' free photo-sharing iPhone app. Chances are that you have had a play with the app which recently surpassed seven million users worldwide who are now sharing 1.3 million photos every day.

Instragram's visual nature is ideal for fashion brands, but there is also great scope for travel, beauty, food and lifestyle brands to join the Instragram community.

The biggest brand on Instagram at the moment is Burberry. The British fashion powerhouse was an early adopter and is doing a fantastic job and as a result has over 86,000 followers to date. The photos the brand shares are a mix of professionally campaign shots, snaps of London scenery, and behind-the-scenes pictures from the world of Burberry.

Other brands using the app are BMI and ASOS and you can find a longer list of what they are up to here.

I do think this is just the start and many other brands will be using the app shortly. What do you think? Is this just companies using cool new technology to appeal to tech savvy people? Or should they just leave Instagram to us happy snappers?

British teenagers know their Apples
But not the ones you eat! A survey has found that 13- to 18-year-olds don't really know how much staple food items like eggs and a loaf of bread cost, but are bang on when it comes to knowing the cost of Apple gadgets. 80% of those survey knew the exact price of the iPhone4 in 8GB and 16GB writes theguardian.

Britain's cheapest tablets revealed
When it comes to tablets you usually get what you pay for but if you like many others can't justify spending £399 on an Apple iPad you'll be happy to learn there are good devices out there that won't cost you half a month's rent (if you live in London!). ShinyShiny's editor Becca has done the legwork for you and collected five tablets that are available NOW for under £100. Check out the complete list here.

iPhone 5 to be released on 15 October?
From an Orange to an Apple, it could be that the iPhone 5 is to be revealed in about a month's time after Stéphane Richard, CEO of Orange's parent company France Telecom, let it slip that October might be it. Cue Apple's iPhone 5 PRs looking for ways to put a gagging order out.

Microsoft shows off Windows 8
Like a proud parent, Microsoft has been showing off the latest build of their Windows 8 operating system this week. If you weren't one of the lucky developers who got a glimpse of the OS's new tricks and features fret not, TechDigest can give you some insight on how to try Windows 8 before its official launch date. Or alternatively visit The Telegraph for some pretty images.

Pentax launches Optio RZ18 18x compact ultra-zoom camera
We love cameras here at ShinyShiny, so are understandably excited each time a new one hits the shelves. This week Pentax has launched a digital camera boasting an 18x optical zoom that fits in your pocket! It is available in black, pearl and orange and will be in-store from mid-October just shy of £200. Click here to find out more about the features.

Google brings voice command to British phones
Here's one for the lazy; British mobile phone users can now speak instructions to their phones with a little help from Google. The search giant has launched 'Voice Commands' that will allow you and I to dictate entire messages or issue instructions such as 'Navigate to' so that phones can show driving directions and behave like satnavs, writes The Telegraph. We only wonder how quickly the novelty will wear off and be taken over by annoyance of people wandering around shouting commands to their phones...

Home phones are losing out to mobile phones
A new study by TalkTalk has found that using the landline has been overtaken by mobiles, but that users still prefer voice calls to social networking. While those aged 25-34 have the most frequent contact with friends and family online, with 40% of the overall population saying the mobile phone was their communication tool of choice.

ASUS U46 laptop sports world's thinnest screen
There's always talk about fashion models being too thin, but can gadgets be too thin? At just 5.5mm thick, the 14-inch screen panel can tilt over the keys at different angles to widen the viewing angle. The notebook has a Sandy Bridge Intel Core i5 processor and 4GB of RAM. Too techie for you? Yes, I snoozed off when I started talking about processors and RAMs... What would be its competitor in Supersized vs. Superskinny: The Tech Special?

HTC brings out Sensation XE
Looks like HTC is churning out handsets faster than we can type... well handsets. Sensation XE is scheduled to hit shops later this September and boasts a 8MP camera and a front-facing camera for video calls. And to add to the splendour comes with a pair of lush Beats Audio in-ear earphones for listening to those tunes.

Another HTC - this time the leaked images of HTC Rhyme or the HTC Bliss
Aimed at female gadget geeks the Rhyme handset will arrive in a shade of silver and as the name suggests has changed to be a little bit less patronising. The launch event is planned for 20th September so expect more on this next week.

Should mobile phones be banned on public transport?
We've all been there. It doesn't matter what time of day it is or where you are, there is always someone around ready to annoy his or her fellow London commuters with mobile phone. Many of these will be inconsiderate people playing their favourite (non-)music on the speaker - what ever happened to investing in a good pair of headphones? - but then there are those who decide to answer a phone call on the bus, overground and sometimes tube only to continue to talk LOUDLY until you or they get off. If just the mere thought of this makes the anger build up inside, know that you're not alone. A recent study found that more than 22% of commuters would welcome an outright ban on mobile phones on public transport. If this is the right way forward we don't know, but let's get the discussion going.

As some clever northern bard once said. 'There's more to life than watching cat videos on YouTube... but not much more.'

And if you agree with him you are about to set eyes on your ultimate Christmas present.

For UK based gadgeteers Thumbs Up have unveiled - wait for it - the Dancing Cat Speaker.

There are very few specs to give you. All you need know is that you plug your musical device into the speaker via the 3.5mm jack and watch your new feline friend boogie. See below.

You can buy one for £39.99 from Play.com very soon.

If you think you've seen all that the world of iPod docks has to offer? Think again; Jarre's AeroDream One takes Hi-Fi docks to a whole new level, with the emphasis on the "Hi" part. The docking port sits on top of an 11ft column, which necessitates the need for a fixed ladder on the side of the speaker to reach it.

It's also got enough punch to match its gigantic size, pushing out an ear-popping 10,000 W through its 5 channel amplifier.

The AeroDream One is very much a luxury item, and priced at € 399,000 (£349,873) is definitely a statement piece as much as it is a speaker system. As such, Jarre sees it just as at home in concert halls as the homes of the wealthy elite.

We have a chat with Jean-Michel in the video interview above, discussing his range of Apple product docks (which includes more affordable miniature versions of the AeroDream One among other designs), the state of the music industry and the inspiration behind his latest mad venture.

iPhone users are more likely to have filmed themselves having sex than the owners of any other mobile phone according to Channel 4's latest sex survey.

The news that iPhone owners like filming their sexual activities is just one of many findings from the new survey which asked over 1000 Brits about what they do in bed.

27% of the iPhone users questioned - or 22 out of 81 - have filmed themselves having sex. That compares to 16% of British Blackberry owners [17/106], 13% of Nokia users [38/274], 14% of Samsung users, 15% of HTC users or 7% of LG owners.

You get the gist. iPhone users like to look at themselves making love.

We take it that's because the iPhone cameras are pretty rocking. Or it could just be that iPhone owners really just more self-obsessed and like looking at themselves naked and pleasuring themselves or other people. We'll never know.. until someone does another survey.

Channel 4 survey 1000 British people about their sex habits every year, and this year they have decided to include statistics about mobile phone usage. They've done the data up into a fantastic infographic that lets you set the perameters yourself and measure different pieces of info against each other.

We love it. Check it out here

Don't go waving your iPhone at nuclear power reactors or anything, but there's now an iPhone app that lets you measure radioactivity. Intended for civilian use in the case of a nuclear reactor meltdown (nice eh?) iRad app can tell you when YOU ARE IN DANGER AND NEED TO RUN.

It won't protect you from it, it won't stop you getting bitten by radioactive spiders that turn you into hybrid mutants, but it will let you see on a little map just what the ambient radioactivity looks like. The sort of thing you might want to know in the case of NUCLEAR DISASTER.

iRad is not quite a Geiger counter but the app works in a similar way by counting interactions of radiation as it crosses the surface of the camera chip.

They say:

"The application contains a proprietary algorithm which detects gamma and X rays passing through the iPhone back side camera chip. The number of hits per time unit is then used to compute the ambient radioactivity level."

It's all displayed on a nice map and you can see the data other people have collected:

"All measures are collected along with their geographical location, and contribute to building a world-wide radioactivity map that does not depend on official or governmental data or authorization. Measures are shown on a most-recent first basis, and are displayed in red or green, depending on a threshold value that is easily set by a slider - this facilitates analysis of the data and visualization of the 'hot points'."

iRad works best of all when the radiation is strongest, though you might have to wait a little while before you get the results back:

"The detector yield is lower than for a dedicated sensor, so measures take longer (up to one hour). The accuracy increases with the level measured, and it is good enough (20%) when ambient radioactivity reaches a dangerous level."

It's from a French company MSS who say they specialize in innovative, mixed mobile/server solutions.

It's pricey though - that gamma particle detecting software doesn't come cheap. But do you want to grow an extra leg or not? Nice to know what you're up against when nuclear Armageddon strikes. :)

$5.99 from iTunes

If you fancy giving your iPhone 4 more of a stitched DIY feel then why not get a case which lets you STITCH ON YOUR IPHONE.

Not into the glass of course... but into a soft silicon iPhone 4 case with stitchy holes in it. It's the cunning idea behind the X Stitch case from Korean brand Taylor on sale now on Mobile-Gear.

It's quite funky to have a case you can adapt according to your mood and cross-stitching ability. See the different patterns you can do with X Stitch. It comes with a needle and 4 colours of embroidery thread.

Mobile-Gear explain: "The body of the case is pretty standard, providing full back and side protection as well as button coverage and a fold out Dock Connector cover. Along the back is a 22 x 43 perforated surface used to guide you in creating a cross-stitched pattern; a thin layer of silicone is easy enough to puncture with the included needle, yet provides protection to the unstitched areas."

If you're dexterity-challenged like me - there's the altogether simpler iShoe case which lets you thread laces into the back of your iPhone case. I can do that easily, and the result is cute. It looks very Roller-Derby, and I understand that's in fashion with the kids.

£13.98 for the Taylor X Stitch case on Mobile-Gear
£11.98 for the iShoe case on Mobile Gear
Available in various colours - free UK and Europe postage

Rumours that Apple's iPhone 5 could be pushed back a month to October appeared on AllThingsD.

Staff holidays at network partner AT&T have provided clues to techies desperate to know when the next version of the world's most popular smartphone will be released. It seems that the previous expected date of September was too optimistic, and that we're now looking at sometime in October.

"Sources with knowledge of the situation say reports claiming AT&T has blacked out employee vacations during the last two weeks of September in preparation for the retail debut of the next iPhone are misinformed. Instead, it's going to be an October surprise -- the month in which Apple will be launching its next generation iPhone."

Though new iPhone usually come out in June/July, this one has been pushed back a couple of times leading speculators to wonder what's going on inside Apple, especially with CEO Steve Jobs withdrawing more from the company on health leave.

Financially though, things couldn't be rosier: Apple has been cleaning up commercially with reports today stating that it has more cash available than the US government ($76bn to the country's $73.7bn) and is officially the second biggest corporation in the world behind ExxonMobil. Incredible.

Sometimes iPhone accessories help you do things - like recharging your batteries. Sometimes they protect your device. Sometimes they just make you look like a twat.

Lenny Kravitz has been caught modelling just such an accessory.

If you want to get the look - you can get it for £21 on Amazon. Will work with any mobile phone.

We also like this one v v available for £21, here

Taking good photos can seem so difficult and it's understandable if you think it is a complicated process that requires expensive cameras, big lenses and turning your bedroom into a dark room. Of course all of the above are probably necessary if you want exceptional pictures, but luckily for all hobby photo enthusiasts out there; there are some very clever apps available that make your run of the mill snaps look picture perfect. And all you need is an iPhone and an eye for a good shot - the latter is more difficult to get a hold of unfortunately...

Since getting my iPhone I've regularly checked the app store to see if any new and fun photo apps have hit the market. Having avoided any too expensive investments so far, my favourite discoveries to date are: Instagram, Hipstamatic, MoreLomo, CameraBag and more recently Phototreats.

Never have adding effects to your photos and sharing them been easier!

Below is a selection of the snaps I've taken while out and about with my iPhone (more details about each app can be found below the photos for those who want to read more).

Which photo apps do you use?

For more of my photos check out Daily London.

Putting your iPhone in one of your actual socks could be a kind of social suicide, but putting it in a catwalk-inspired tote sock looks like fun to me.

Trendz make socks for gadgets. Mostly iPhones but also laptops, iPods and MP3-players. They've just released some new ones for iPhone 4.

These cases are also upgrade-proof - unless Steve Jobs whips out a 15 inch screen on the iPhone 5, we imagine that the new iPhone will fit into these socks.

Apparently the designs reference catwalk trends, but it doesn't specify which ones. So we guess that those trends are (from left-right)
- hipster knits, a staple for the past five years
- royalty, you know, like Kate Middleton
- errr, we don't know what that heart sock is about. Maybe there's a catwalk trend for hearts. We are technology journalists, sometimes this fashion stuff passes us by..

TRENDZ socks are available in TopShop

Don't worry if you can't afford that 3D TV - more gadgets don't make you happier said a survey in the US.

In fact - too many gadgets can actually make you feel worse the survey reported. The research film Ipsos Mendelsohn looked at very affluent gadget owners - families with an income over $100,000. The respondents felt that the more electronics they had, the more complicated their life became.

Leading "technology-infused" lives rarely made them feel better. Most people said
their lives were now "more complicated," "more stressful" and "focused on finding ways to do more with less." Fewer than half said their lives had become "more fun."

Having too much money to spend on high-end gadgetry isn't a problem most of us face, but it's comforting to know that even if we could purchase that home cinema unit, it might not make us happier...

[via DigitalTrends]

IT COMETH.

And every day there's a new rumour about what's going to be in it.

It probably won't be able to levitate, but - like the rest of the world - we're expecting a lot from the iPhone 5. Here are a few of the suggestions kicking around...

1) Curved glass screen
Apple has ordered a whole bunch of glass cutters capable of cutting curved lines. Digital Times reckons that means we're in for a curved glass display. Most likely convex.

2) Metal back
Like the current iPods, the new iPhone could feature a strong aluminium back. Would strengthen the device and be lighter than glass.

3) Thinner - don't know if this even counts as a rumour. The damn thing gets slimmer every year so we guess it's a safe bet that curves or not, it will be slimmer than the current iPhone 4.

4) Support for fast internet LTE networks
Wouldn't this be nice? Seems a bit unlikely however. More likely is that Americans will get more choice over which network they can get the iPhone 5. At least that means we Brits won't have to listen to them complaining about it so much..

5) Support for NFC chips
Probably a geek pipe-dream, but NFC chips would enable all sorts of interesting things like contactless card payments. Well, interesting to geeks anyway.

Forget touchscreens - how about controlling your iPhone by just TAPPING YOUR HAND?

German computer scientists at the Patrick Baudisch at the Hasso Plattner Institute in Potsdam, Germany, have come up with some amazing gesture recognition tech which lets you control an iPhone by simply tapping and stroking your own hand.

The UPSIDE - this is the human- computer interface at its most intuitive and natural. Boundary-breaking.

The DOWNSIDE - um, for this to work you need to have a giant wired-up, internet-connected camera on your head. And well, it's not actually that hard to take your iPhone out of your pocket.

The CONCLUSION - great technology, but probably some work to be done on the application of it. Perhaps finding someplace where it would be useful....

In a little more detail - that camera in the demo would be replaced by a smaller, lighter, more wearable one. It is a depth camera similar to the one used in Microsoft's Kinect for Xbox...

According to Technology Review:

"The camera "subtracts" the background and tracks the finger position on the palm. It works well in various lighting conditions, including direct sunlight. Software interprets finger positions and movements and correlates it to the position of icons on a person's iPhone. A Wi-Fi radio transmits these movements to the phone."

Related: Top 5 Kinect Hacks