The desired effect of the holographic display would be realism, spawning a new generation of televisions, computer monitors and cinema displays.
The technology operates with a new kind of screen, created from pixel-sized domes. These domes deflect images at different angles, which will in turn appear different to the left eye and right eye. This presentation of images at different angles generates a stereoscopic image, which the human brain will decipher as three-dimensional.
Below is a schematic filed by Apple in 2008 regarding three-dimensional displays. As you can see, it makes use of stereoscopic images (click to enlarge):
Another proposal in this patent suggests the use of 3D imaging to track multiple viewers and the positions of their eyes in relation to the holographic display. The display can then adjust itself accordingly, to keep the picture sharp for all viewers.
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Article Via the Telegraph