It has the form of a carpenter's pencil to prevent it from rolling and has a tapered tip to offer both fine lines and broad strokes. The pen uses Smart Bluetooth to connect to the iPad and does this via "Kiss to Pair™" where you simply press Pencil's tip on the screen. When Pencil is paired with your iPad you can use your finger as an additional tool blend colors and smoothen rough edges. The battery - which can be recharged via USB under 90 minutes - should last about a month.
Pencil comes in two beautifully crafted forms, a sustainable hardwood with magnetic snap called Walnut for $59.95, or as brushed unibody aluminium called Graphite for $49.95. Pencil currently only ships to the U.S. and Canada, but FiftyThree is working on selling it to more countries. You can subscribe here to get notified when they're shipping to your country.
FiftyThree have also made a unique video (shown above) to showcase Pencil in action – it features a unique point of view, so caution if you get motion sick quite easily!
What I really like about it is that (at around 37 seconds) it really shows how you actually interact with a pen when you "Think with your hands".
Another thing to point out is the great section on their site called "Crafted For Creativity" showing details about the pen by taking it apart while you're scrolling down the page.
If you're not familiar with Paper yet, you can download the app for free from the App Store (with in-app purchases for more tools) while waiting for your Pencil.