I honestly have no idea on what they plan on doing with this. Seems like a marketing gimmick to me. There are so many companies that are trying/have tried to jump on the Blockchain buzzword bandwagon. A lot of people revere blockchain as being this all in one magic technology that can solve all of our problems and should be implemented in nearly everything.
IMO this is a flawed way of thinking. Blockchain has a very specific set of use cases and definitely doesn't belong everywhere. A blockchain smartphone makes no sense to me. How does this even work? What's the incentive for maintaining the ledger? What is the ledger for? So many questions...
With that being said, A smartphone that has a secure chip separate from everything else exclusively used for securing and storing cryptocurrency would be immensely valuable. It's just hard to trust something like this as the company could easily implement a backdoor. The software would definitely need to be open source for something like this. I think it would be great to have both a hardware wallet and your smartphone all in one with nil risk.