Philips is demonstrating a new fluid lens camera technology that... mimics the action of the human eye using a fluid lens that alters its focal length by changing its shape. The new lens, which lends itself to high volume manufacturing, overcomes the fixed-focus disadvantages of many of todays low-cost imaging systems.
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The fluid lens measures a mere 3 mm in diameter by 2.2 mm in length, making it easy to incorporate into miniature optical products. The focal range provided by the demonstrator extends from 5 cm to infinity and it is extremely fast: switching over the full focal range is obtained in less than 10 ms. Controlled by a dc voltage and presenting a capacitive load, the lens consumes virtually zero power, which for battery powered portable applications gives it a real advantage. The durability of the lens is also very high, Philips having already tested the lens with over 1 million focusing operations without loss of optical performance. It also has the potential to be both shock resistant and capable of operating over a wide temperature range, suiting it for mobile applications. Its construction is regarded as compatible with high-volume manufacturing techniques.
http://palminfocenter.com/view_story.asp?ID=6605
I could easily see this being incorporated directly into display bezels of PowerBooks and perhaps even desktop displays as a way of bypassng the clunky clip-on iSights used now.
And if they ever make a video iPod (though I'm not holding my breath that we'll ever see one), you could slap one of these lenses on with little effort and add another dimension of functionality.