The Etcher combines a red iPad case complete with sketching knobs and an app that completes the Etch A Sketch experience. They have even obtained a license from Ohio Art, the company that makes the real Etch A Sketch. Of course, it erases if you shake it.
We are negotiating with a number of contract manufacturers. The most intriguing option is Ohio Art's invitation for us to use the same factory that manufactures the classic Etch A Sketch. Although it is more expensive than some the other options, we like the fact that they already know and understand Etch A Sketch. For instance, they know exactly what color red to use for the plastic--they simply use the same plastic they use in production!
The team behind the Etcher is aiming to fulfill the first orders by the end of October and they plan to publish an open source SDK for accessing the Etcher's controls from within other iOS apps.
The Etcher is available for preorder on Kickstarter for $60, with free shipping within the United States.