I bet that volcano in Iceland must seem tame compared to the reaction of Steve Jobs after hearing this news. A few weeks ago Gray Powell, a (now probably sacked) software engineer at Apple, left the new iPhone at a bar in northern California.

Apparently the guy who found it did his utmost *cough, bullshit, cough* to get the phone back to Apple before selling it for FIVE THOUSAND DOLLARS to the super-blog Gizmodo. It seems to have been a great investment, the story is now rocking over 10 million views on Gizmodo alone, with the sort of global coverage that would give Nokia wet dreams.

As you can see from the picture, it’s a big change from the usual iPhone styling, now it’s entirely flat and less tacky looking. Apple have also made it smaller in size with a bigger battery.

Here are some of the main features:

• Front-facing video chat camera. See my iPhone video calling post.
• Improved regular back-camera.
• Camera flash
• Micro-SIM instead of standard SIM (like the iPad)
• Improved display. The general concenous is that it’s 960×640, making it riduculous close to some netbooks.

No word on whether it has NFC yet, but the guys at Newtoy make a great point:

Gizmodo reckon that the back of the device is now made of glass or ceramic material, which would enable a stronger cell signal, but also potentially allow for an RFID signal to be ‘read’ or transmitted more effectively across the device.

However Gizmodo are getting their moneyz worth by publishing more revelations over the next couple of days like some sort of tabloid Premiership roasting scandal.

The phone isn’t due to be released for a few months yet but this totally kills any decent ‘wow’ factor that Jobs was hoping for at the official announcement. He must be fuuuming!

Part of me wants this to be different from the final version sold in shops, I feel slightly underwhelmed after seeing all those funky patents Apple registered. Whether this is one big prank by Apple or their worst leak ever, one thing is for sure, consumers and the media care far more about their products then any other manufacturer.

More pictures and videos over at Gizmodo.