Gizmodo paid $10,000 for “lost” iPhone 4G, Rumor

The Internet is abuzz today with Gizmodo’s hands on preview of what appears to be Apple’s next-gen iPhone. In case you missed the build-up to the story, someone found a cased iPhone on the floor of a bar in Redwood City. From the outside, the device appeared to be an iPhone 3GS, but upon removing the device from its specially designed case, it was clear that this was no ordinary iPhone. Rather, it appeared to be Apple’s next-gen iPhone. Found. In the wild. A solid two months before anyone expected to see pictures of it.

In other words, this was the motherload of all Apple scoops.

The individual who found the iPhone sent pictures of the device to Engadget, but it was Gizmodo who scored big by actually obtaining the iPhone itself. It’s been reported by in-the-know Apple blogger John Gruber that Apple considered said iPhone “stolen”, and was keen on getting it back.

But with Gizmodo’s report blowing up the Internet today, the cat is out of the bag. At the time of this writing, Gizmodo’s story alone is bordering on over 4 million page views.

Now word is leaking out that Gizmodo paid a cool $10,000 for the iPhone prototype, which all things considered, seems like a bargain given Apple’s typically tight rein on product leaks.

$10,000 has undeniably diverted a ton of eyeballs to Gizmodo’s site, and the surge in web traffic probably has Gizmodo editors jumping for joy. But you have to wonder if Gizmodo, in the grand scheme of things, tarnished their “relationship” with Apple for a short term spike in pageviews.

Think about it - Steve Jobs is probably livid right now, and what are the odds that Gizmodo, going forward, gets invited to Apple’s always popular “special events.” And what are the odds now that Gizmodo will get a review unit of the upcoming iPhone 4G? Though, to be fair, they apparently already have one.

On another note, there has been talk about Apple legal going after Gizmodo. We will see?

Source: edibleapple.com

Update: 

The news came just hours after the bloggers Gizmodo described how a 27-year-old software engineer at Apple (who is named and pictured in the post, by the way) managed to leave the precious iPhone 4G prototype — disguised to look like an iPhone 3GS — on a barstool at the Gourmet Haus Straut, a "nice German beer garden" in Redwood City, about 20 miles northwest of Apple HQ in Cupertino. (Engadget had blogged over the weekend that the phone was lost in a San Jose watering hole, leading to some initial confusion.)

Having downed a few brews, the hapless Apple engineer eventually rolled out of the bar, according to Gizmodo, absentmindedly leaving behind the next-generation iPhone (which he'd been field testing, the post said). Hey, it happens. (If I had a nickel for every time I left a credit card at a bar ... ) Another man in the bar ended up taking the phone home, peeled off the protective jacket the next day, and realized he had a windfall on his hands.

And as we all now know, "weeks later, Gizmodo got it," says Gawker Media Inc.'s Gizmodo — leaving out a key detail that Nick Denton, founder of Gawker Media, filled in later for the Associated Press: The company paid $5,000 for it. 

What followed, I'm sure, was a scene similar to the wonderful sequence in the BBC version of "State of Play": The editors huddled with their lawyers, the crucial evidence (a suitcase of documents in "State of Play," an iPhone in the case of Gizmodo) on a table before them, trying to suss out whether they should write a story or call the police.

So, is Gizmodo in trouble? Hard to say, but the L.A. Times tech blog checked in with UC Irvine law professor Henry Weinstein, who says Gizmodo is probably in the clear: "Journalists generally do not get prosecuted for being in receipt of stolen documents, as opposed to the person who received the documents and turned them over." (It's worth noting that Gizmodo claims the iPhone in question wasn't stolen — merely "lost.")

Now, Apple may find some other way to punish the Gizmodo guys (who are fast becoming the Merry Pranksters of tech bloggerdom) — perhaps a different legal route, or it may freeze out Gizmodo in terms of access to Apple reps and review samples. Then again, Apple reportedly had already snubbed Gizmodo by refusing to give it an advance review iPad, so ... sounds like Gizmodo's iPhone scoop may have been sweet revenge for the spurned blog.

Source: AP