It has to be the former, since the screen itself has no 3D capability. It's just changing the perspective based on your viewing angle and distance.
Ahh, then in that case color me greatly unimpressed. I can't see this being useful for much. It may be good for shopping Amazon's site as I'm sure they will tool it up for 3d, but it's not like I spend that much time shopping where I need it to resemble a game. It might be cool for games, that's about it. Mapping I don't see why I would need to be turning the phone and my head to see different 3d perspectives especially while I'm driving.