As you can see from the image above, the PadPhone takes all the processing power of a 10" Android tablet and compacts it into smartphone sized container. The phone component is removable and can function by itself. The tablet provides extra battery life and extra ports, but it doesn't have the CPU. It can also charge the phone.
The phone is supposed to have a 4.3" screen and a dual core Nvidia Tegra 2 CPU, but the specs are still undefined.
Earlier this week I wrote about how Asus had been experimenting with new gadgets that cross product niches or define new ones. At the time I wrote that post I didn't know about the PadPhone. I wish I had known; it clearly proves my point. This device attempts to combine a phone and tablet in the hopes it will reduce the total hardware cost. I can't wait to see how it works out.