There is a complete saga around the iPhone 4G prototype and how it was lost and the name of Gray Powell was in it. The Gizmodo Team paid hard money to acquire this device and the team played with it for a complete week.

They have dissected the device, and have information to reveal about its inner workings. According to them, during this dissection they found evidence that the phone is indeed from Apple.

Here is some great news about the upcoming iPhone 4G.

Currently, all iPhone models support a 480×320 multi-touch display. This display was the best screen on the market, but the size was exceeded by the Android and Windows Phone. In those products the 800×480 became the new norm on the high end. According to the rumors, Apple wants to increase the display. Daring Fireball referred to a 960×640, but the Gizmodo team couldn’t confirm that size, since they have only seen the connection to the iTunes screen.

Mobile iChat was rumored ever since the iPhone 2G shipped. That device didn’t come equipped with iChat, maybe because of AT&T’s influence. This rumor finally gets confirmation for the upcoming iPhone 4G. This means it will also have the front-facing camera. The problem for Apple is that they may be too late as the upcoming Android EVi 4G already has a front-facing camera.

During the dissection, Gizmodo also noted a larger rear-facing camera and a camera flash. This is consistent with the rumors that Apple is looking for LED flash components.

A secondary microphone, a very useful tool for noise cancellation, was also found. It will read ambient sounds and remove them from the main audio channel, and the result will be a clearer sound for the person on the other end of the line.

The non-removable battery is considerably bigger than the previous iPhone 3G’s battery, Gizmodo pegs it as 16% larger. Another feature of the iPhone HD that was found is, like the iPad, the upcoming device uses MicroSim, not MiniSim, as found in the current iPhones.

As the prototype shows, the iPhone HD seems to have a more glass-like back, but this doesn’t mean the developers will keep it this way. In this setup the glass back equals double breakable surfaces in the device.

So, a lot of rumors received confirmation when this prototype was found and dissected.  But the prototype lost by this Apple Engineer isn’t the final one. I’m counting the nights until the official release. Are you?

iPhone HD