It's definitely a phone in the video: http://i.imgur.com/MgBcxMw.png
You can see its top at the bottom of the photo.
You can see its top at the bottom of the photo.
http://i.imgur.com/ExL1OqV.png
There's a quick photoshop of a phone at an angle and the display square. Now, you wouldn't purposely use the phone at such an extreme angle, but when you're typing, playing games, in bed, etc, it might make things easier to use. Fairly straightforward, it would just be tracking the location of your head, and adjust the perspective of the display.