This is an actual product for sale called the iBackFlip Hitch. Basically there's a magnetic frame on the border of the back of the iPhone. I think in some cases, the magnet is built into an iPhone case. The magnet is powerful enough for you to post your iPhone on a metallic surface like a fridge or wall.
From what I've seen from products like this, these "smart covers" are NOT meant to cover the front of the phone. The cover sticks to the back for you to fold up as a stand or to wrap your earbuds around (and then removed to be stowed away). The inclusion of the magnet allows you to post the iPhone against walls, whiteboards, fridges, etc.