The device would reportedly include a microphone, speaker and rechargeable battery, along with cellular or GPS technology for wireless communication. Besides the meh-inducing functions such as a calculator and clock, most intriguing are the smart pen's proposed handwriting recognition capabilities. Users wouldn't need to write on a surface, instead they could just write in mid-air.
BLOG: Air-Write Your Future Texts and Emails
The smart pen could effectively be used as a PDA or an on-the-go word processor and would even include voice recognition. Regardless of whether any of Apple's proposed ideas see the light of day, the writing seems to be on the wall: portable, personal computers are being embedded into just about everything.