Next-gen iPhone HD found in San Jose bar? Not so fast.

What some said at first was the next-generation iPhone, found in a San Jose bar inside of an iPhone 3G case, appears to be just a counterfeit. The outing was based on a reader, whose relative brought a similar looking phone in Japan.

It was, in fact, a likely place to drop a next-generation iPhone. San Jose is adjacent to Cupertino, CA where Apple HQ is located.

The photo given to enGadget is above. The information leaked about the device at first was as follows:

• The device is definitely different looking, more blocky than earlier models. However, the case itself could be a prototype case.
• The device was working when found, and running the new iPhone OS 4.0 currently in beta form.
• The phone had 80GB of storage. That's only strange since most expected a hop to 64GB (the iPhone is currently available in 8, 16 and 32GB flavors).
• Front-facing camera.

Since the first leak, however, it seems that the device was outed as a Japanese clone. As AppleSfera said (translated from Spanish via Google Translate):

Our reader Ivan Meneses has contacted us to tell us that this supposed new iPhone could actually be a Japanese clone, which he is due to a relative who brought it from Japan. I leave the photo you sent us ( thanks Ivan! ) while we are waiting for more pictures to confirm.

Reportedly, those who "found" the device were shopping hands-on time to several sites. The cost, according to enGadget, was about $10,000, which they passed on.

If this had been a prototype, someone would be sharpening his resume today. Generally, as well, based on our past experience with prototypes, they are not allowed outside the building unless hidden inside a special case or cover, and sometimes, not at all.

Update: I was wondering how a clone could have iPhone OS 4 on it. Looks like more confirmation has come in that, internally at least, this might be for real.