I’m not sure if the gun above is the same gun that is shown in the Caption This: A Gift segment, but it looks very similar.
In the video below the gun which appears to be a cellphone is actually a real working weapon, firing the bullets that are in its cartridge.
However, if they really want to maximize its disguise effect it needs to look like a more modern phone, like a Samsung m510 or something similar. The one in the video looks at least 10 years old.
The overall design is still cool though. See it in action below.
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