The latest on that alleged iPhone 4G prototype: Brian Lam, Gizmodo's editorial director, has published an official letter he received from Apple requesting that the device be returned immediately.
Gizmodo believes that such official communication proves the device is real. However, it should be noted that this does not necessarily mean that the device is the next iPhone - just that it's an Apple prototype of some sort.
How the phone was found
The iPhone 4G prototype - at least, that's what Gizmodo assumes it is - was reportedly found by an anonymous bar-goer at Gourmet Haus Staudt, a German beer garden in Redwood City, near San Francisco. The phone was discovered on a barstool at midnight on Thursday, March 19.
The person who found the phone asked around the bar to see if anyone had lost an iPhone 3GS (the phone had a case on it that made it look like a 3GS), but nobody claimed it. The person then unlocked the phone and found the Facebook page of Apple software engineer, Gray Powell, still signed in. The person decided to try to return it in the morning.
Gizmodo says that the person woke up to find the phone dead - thanks to Apple's MobileMe service, which allows users to wipe their stolen iPhones of all data, remotely. The person then noticed the phone looked different from other iPhones - for one thing, it had a front-facing camera - and managed to remove the "disguise" case. Upon discovering that this iPhone was not like any other iPhone out there, this person promptly forgot their promise to find Gray Powell and return the phone, and started selling to the highest bidder.
Did Gizmodo shell out $5,000 for its exclusive lost iPhone 4G story?

[Via: Gizmodo]
Yes, says head of Gawker Media (the publisher of Gizmodo) Nick Denton, who tweeted earlier Monday, "Yes, we're proud practitioners of checkbook journalism. Anything for the story!" and "Does Gizmodo pay for exclusives? Too right!"
According to AOL's Daily Finance, Engadget had the chance to bid after it published the first fuzzy photos of the phone, but declined. Engadget editor in chief Joshua Topolsky says he doesn't believe in checkbook journalism as "it encourages awful behavior in tipsters."


[Via: Gizmodo]


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Comments received
ratkat said on Tue, 20 Apr 2010
Headline for this is a little misleading, Apple have a right to get their property back, and Gizmodo refused to release it without a formal letter in writing, hardly 'Demanding' it back
Dragonfly said on Tue, 20 Apr 2010
Poor Gray Powell. Wouldn't like to be him the next morning. Mr Powell, Mr Jobs would like to see you.... :)
I suggest though it's not really a major disclosure, we all pretty much thought there would be a forward facing camera and a Flash. In fact if they hadn't been there, that would have evoked more disappointment than anything else.
I guess the only thing the early disclosure does is take away the expectation and impact of the launch, but usually they are built up so much that they generally turn out to be an anti-climax anyway. Imagine if they were only testing the forward facing camera and, like the iPad, decided in the end not to have one.
heartydiamond said on Tue, 20 Apr 2010
Would have thought they'd have used Find My iPhone when it went missing! (or are we to assume the 4g iPhone is incompatible with this service?)
Rugby said on Tue, 20 Apr 2010
so what, prototypes are as a rule just that and wind up looking different at launch, maybe there exist many versions/variants of future phones
frere said on Wed, 21 Apr 2010
Prototype or not ... I like it and, if it comes out looking like this, I'll buy it.
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