What's apparent is that Kelli Kennedy, author of the article, is a tard.
You'd think that AP would have some modicum of screening for technical accuracy but apparently they don't. You'd also think they had a cadre of
technically apt reporters, one of whom might be sent to report on what is basically a technical subject. Nope.
When you see her calling the PCB a 'chip', you should realize she doesn't know the difference between an integrated circuit and a potato chip.
Seriously, the thing's either a stunted GSM cell phone or a two-way pager with a GPS part attached to it. You're dialing a service he's set up and
is charging you 20 bucks a month for when you hit the button. Conversely, you can call the phone and query the GPS coordinates.
If you don't keep your sneakers charged, it will quit working.
This is basically the same thing as this...
www.duncans.tv..., only with the phone casing removed, along with the
keyboard, display, speaker and microphone. Then you stick it in a shoe. Mystery solved. No "chip". Lady Misinformed from AP led you astray on that
one.