We just sorta figured that there was some unwritten rule among cellphone manufacturers that loosely said something to the effect of "don't make a phone much smaller than a Pantech C300." Don't get us wrong, we never doubted that the wonders of modern electronic miniaturization could produce a phone the size of a Bluetooth headset, but we're figuring you're likely to mistake it for a variety of other, far more disposable objects in your pocket -- coins, lighters, and the like -- not to mention the obvious usability concerns. Nevertheless, the Xun Chi 138 forges ahead with the submicronic form factor, trading a traditional keypad for a touch sensitive display with handwriting recognition while still managing to pack in USB connectivity, an MP3 player with 121MB of storage, and what we think is a VGA cam (despite the clever "1.3 MEGA PLIXS" label). On the downside, the handset tops out with lowly GPRS, but then again, we can't imagine consuming terribly much data with a display the size of our thumbnail.

[Via The Raw Feed]