More talks about Google's very innotive smartphone project, also known as Project Ara, are circulating the tech industry, and recently the first demo video for the smartphone was released.

During the 3rd day of the LAUNCH festival, Paul Eremenko from Google dropped by to provide a hands-on demonstration of the Google Ara smartphone. As he tinkered with the prototype, he explained the reasons behind Google's interest in the latest project, BGR reported.

Basically, Ara is Google's entry in the world of smartphones, which offers users a wide range of customization options in the device's hardware and other features. It is the company's way of presenting consumers with cheaper alternatives that is functionally equal to or superior than other devices available in the market today.

In Eremenko's 25-minute presentation, he used a non-functional prototype to explain Ara's customizable feature. The entire device looks like a jigsaw puzzle because of its removable panels or modules. The modules are held together in the frame or endoskeleton by pins and magnets, but future models will feature capacitive pads and stronger magnets.

Since the modules carry basic smartphone features such as the camera, speakers, and other censors, users can upgrade their devices by replacing them according to their needs. It's similar to the concept of purchasing parts to build your own PC instead of buying a pre-assembled unit.

Once assembled, the endoskeleton of the Ara will serve as a switch that will link all the modules together. The unit also features a small on-board battery which allows users to remove modules even without turning off the device. Also, since modules can contain the identity of users, they can simply move from one ARA phone to the next with all their data.

As for the official launch of the Ara phone, Eremenko hinted that the device may be made available to the public around this time of next year. Google is planning to sell the basic Ara phone model for $50.00. This includes the endoskeleton, a display, a low-end CPU, a Wi-Fi module, the built-in battery, and the Android operating system.

Below is Eremenko's demonstration during the event.