Love it or hate it, the iPhone is a pretty big part of the modern smartphone market, and as such is currently the phone to beat. Apple is expected to release a brand new iPhone in the summer, but normally it’s legendary culture of secrecy keeps leaks to an absolute minimum, leaving the technology press to rely on assumption and rumour. This month however Apple’s vice-like grip slipped and out popped an iPhone prototype. Encased in a custom cover to make it look like an ordinary everyday iPhone 3GS, the iPhone prototype was dropped by an Apple engineer in a bar in California, where it was picked up and promptly sold to Gizmodo for a purported $5000. When Gizmodo unwrapped the now remote-wiped and non-functional device, they found an iPhone without the curvaceous back of the current generation and a metal strip around it’s edges. As you can see in the photo above, the front of the device resembles that of the previous generation, but the rest of the device makes a distinct departure from what’s currently available from Apple.

Apart from its looks, Gizmodo discovered that the prototype device was packing a front facing camera, a larger camera lens on the back with an LED flash and a larger battery. The screen itself was marginally physically smaller, but was said to have a much higher pixel density, laying credence to the iPhone HD rumours. The volume rocker had also been replaced with two separate buttons, possibly indicating some sort of dual functionality, a dedicated photo button in the Camera app perhaps. Those of you hoping to slap your current SIM in the next generation iPhone will be sorely disappointed as it seems, just like the iPad, Apple has gone for a micro SIM slot. Don’t fret however; all current major iPhone carriers have announced that they’ll be supporting the new SIM standard.

Of course this ‘find’ didn’t necessarily have to have been an actual Apple prototype, but its authenticity was confirmed when Apple themselves asked for the device back. Since then the saga of returning the iPhone and now just this week, the Police raid on the Gizmodo Editor Jason Chen’s house over the purchase of ‘stolen’ goods, has raged. What next will unfold and whether we’ll see this type of device come July is unknown, but I for one am itching to see the how the rest of this story is going to unfold. Head on over to Gizmodo for full coverage including a blow-by-blow account of how the phone ended up with Gizmodo.

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