The word it in paragraph 2 refers to .

Read the following passage and mark the letter A, B, C, or D on your answer sheet to indicate the correct answer to each of the questions.
In the past, cell phones were big and heavy. In the future, telephones will still be big. The good news is that people will be able to fold them in half to make them smaller. The “foldable phone" is now in development.
One company has come up with a smartphone and tablet in one. This device can fold down to the size of a regular cellphone to make it “pocket-size.” The foldable phone has a larger screen, keyboard, and high-quality speakers. This makes it easy to use. The flexible display can go from smartphone to tablet just by unfolding it. The interior screen is so big that it can run three different apps at the same time. People can watch a video, talk about it, and browse websites online. There are also two batteries inside the phone - one on each side.
Many companies have been looking for ways to improve smartphones. The foldable phone is unlike anything else that has come before it. This powerful machine is a smartphone, computer, and camera all in one. There is a current race to get foldable phones on the market. But we’ll have to wait and see how well these new smartphones work. If people like them, maybe one day we will be able to fold and even stretch our phone.