The fold out design is not outdated. Have you seen the *NEW* Casio G'Z Brigade phone? Same basic flip open design as the 3G MAGIC. Apparently Verizon thought it was a good idea to develop one recently and that the design was not a throwback to the '90s. Here's a link to look at the Brigade:
As far as capital, there's a million and one different ways to get financing. Seems like you haven't done much research into how to finance business expansion/operation/production. None of it needs to be dilutive. In fact, the majority of ways to raise capital are not dilutive.
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