One month ago, a Sharp spokesman stated that the Japanese company is working on a glasses free auto-stereoscopic 3D screen which will be included in a smartphone that should be released sometime before the end of 2011.

It seems that things are going nicely for Sharp, as the Japanese phone distributor is already showcasing the prototype unit of the smartphone at this year's IFA event.

We're not sure if the device received a codename yet, but we know that it utilizes the same technology that is behind the Nintendo 3DS console.

The prototype phone features a glasses-free 3D parallax screen, a 3D camera on the back, and 3D output over HDMI.

The camera is able to take pictures and video in 3D, which can be viewed only on compatible devices.

The 3D display included seems to allow viewers to see 3D images without the need for special glasses or eyewear.

Instead users will have to keep the phone at the correct distance and angle to be able to see the 3D screen displaying correctly.

The phone's 3.7-inches LCD screen boasts a 800 x 480 resolution in 2D mode, which becomes 400 x 480 in 3D.

According to the guys over Engadget, who managed to see the phone in action, both on the device's own screen as well as on a regular glasses-required 3D TV the prototype was outputting to over HDMI.

Even thought it seems very interesting, this won't be the first 3D phone to be released, as Hitachi already announced earlier this year that the KDDI Japanese carrier and NTT Docomo will utilize this prototype 3D display.

Still, while the Hitachi 3D phone will only be available in Japan, Sharp promised that the phone will be internationally.

While the release date is not yet specific, Sharp is stating that it will launch the smartphone worldwide before New Years Day 2011.