When it comes to making calls, all phones, no matter how smart or dumb they are, work pretty much the same – a microphone on the unit's bottom captures your voice, while you listen to the other party through a tiny speaker above the device's display. That is old and familiar tech.
Kyocera, however, is demonstrating a phone at CTIA 2012 that uses a different principle. In a nutshell, the earpiece is replaced by a ceramic transducer that generates vibrations on the device's front side. Once the phone touches the user's outer ear, these vibrations are transmitted over the skull tissue and travel straight to the inner ear. The result is clear sound that does not interfere with background noise. Now that's what we call innovation!
Image courtesy of Phone Scoop