I assume it (a) actually functions as a cable that can charge a phone (b) can enumerate on the USB A connection as various types of slave (such as network adapter or storage device) and use this to bridge into the computer (c) enabled connections to the cable Wi-Fi from a phone as a means to control or monitor the cables activities.

I initially thought this might be used to hack into phones via the lightening or USB ports, but the security on these devices is pretty good. It seems less likely that an exploit of this value would be put into cables like this. I still worry about plugging my phone into random hotel or transport USB charge ports however... I should pick up a USB condom I guess!