Looks like a physical embodiment of Windows 8. :o)

The whole world is going Lego! Modular like desktops of old only more so. Microsoft should fund this since the layout looks like the Windows 8 tiles motif.

Its surprising what you can build from Lego, but few would suggest it as a viable option for the real thing. Desktop PCs are modular, did that reduce waste? Mobile devices are all about cramming as much as possible into as small a space as possible, this phone would be closer in size to a notebook PC with all the connectors and packaging, and given the limited connections between modules the performance would be pedestrian.

It's a rather old concept. I have seen very similar project a couple of years ago. Of course, no success since then... It also against the trend of consuming oriented economy. The current trend is to build devices that are practically disposable (on one hand because of their purposely low build quality and unreliable/untested design, on the other hand because of the over-driven "competition" to release new devices sooner and manipulating people to buy new gadgets every year...

All those connectors could simply add weight, complexity and more opportunities for component failure.

What about increased packaging for individual modules? logistics for shipping, stocks? Or will these be mailed direct to buyers? Or just offered as direct printable phones? How thick will this be??? That's at least 4 additional layers of casing and wasted plastic/material.
Failure points for non-tech savvy consumers will be a cause for returns and a lot of broken modules.
I would rather have a modular board inside, and customers pay to just upgrade/replace parts. Considering how big smartphones are getting again, there's enough room to have modular circuit boards but one external case (plastic, metal, material of your choice)
Last thing I want is to lose pieces of my phone in my pocket or restaurant because the connectors became lose.

I'm hoping that the lego-block guts would actually be surrounded by a durable (printable?) case of some kind to hold all the parts in, so that the phone doesn't go yard-sale in your pocket or into your soup.

This is a fantastic idea, and to reduce waste, you could also implement similar solution for this as for batteries, place recycling bins at selected areas where people can throw the used cubes away. In fact, i think Lego should take this idea and use it, just revolutionize the market and show Samsung, Apple and all these close minded companies that Lego is awesome! :-p
I do agree with Bruce Crosby about the connectors, but then again, everything else is breaking easily any way, so this shouldn´t be any more problem than your average phone, besides, if the plate that holds the cubes together is faulty, it can easily be replaces, instead of throwing away a whole phone because of one faulty soldering or some nonsense like that.
Though PCs are modular (in some sense), they aren´t for everyone to upgrade, plus, there isn´t any special dumping grounds for the waste parts, so it just ends up in the waste yards, they of course need to be recycled or disposed of in some better way. But, if there were a similar way to upgrade the PCs like these concept modular phones, then you would have an easier task of upgrading and even disposing of the waste modules.
@John Lacson - And as for loosing parts in your local restaurant, if it would make it any easier, there could be a encasing or even a wallet which you could put your phone into so you wouldn´t be loosing parts of it while rumbling in your pocket to answer your phone.
I think this could work for not only our phones, but our tv, pc, laptop, tablet, home entertainment system, even some parts of your car, and the list goes on and on, basically, everything you could upgrade in some way, you could solve it with modules (Lego, you´ve got to love it!).

Microsoft and Apple already have patents on modular devices that connect the components wirelessly.

This is the kind of smartphone or pad device I would buy. Don't own a smart phone or a pad device due to their extremely poor fixability and upgradability.