So as the news has spread, an Apple employee (Grey Powell) lost the next gen. iPhone prototype in a bar and another person got it. He tried to return it back to Apple and failed. Gizmodo then purchased the prototype for $5000 and exposed it to the masses. Apple then contacted Gizmodo asking for the prototype back. That's the fiasco in a nutshell.

Here is a picture of the next gen. iPhone (more on Gizmodo):


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