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At this stage there was probably not much to see. Most likely some diagnostic stuff to test the touch screen.
Still certainly at later stages they probably had a number of GUIs before settling on what they did.
At first there was no app store, which made the screen layout look a bit odd. You had these small icons, but there was plenty of space. Why not make the icons bigger then? Why go for icons anyway?
Maybe Apple already anticipated that in the future more icons would feature on the iPhone screen, but I wonder if they weren't already planning for 3rd party apps from day one.
If only we had 100% insight in to the thoughts and prototypes of companied not only like Apple, but also IBM where I'm sure they have even more juicy stuff stored in boxes in a dark cellar.
I'm sure I read somewhere (possibly even from an article posted on here) that the iPhone project originally started out as a tablet and was only later decided to refocus as a smart phone.
I'll try to dig out a link later but this prototype would certainly support that assumption.
[edit]
I'm not going totally mad, it was posted on here: http://www.osnews.com/story/26373/Apple_s_iPhone_the_untold_story
The iPhone actually began as a tablet project. Indeed, Apple Senior Vice President of Worldwide Marketing Phil Schiller testified that the success of the iPod and the disruptive effect it had on the music industry prompted Apple to think about what other industries it could tackle.
The iPod, Schiller explained, "really changed everybody's view of Apple both inside and outside the company." Schiller said that as ideas were tossed about regarding Apple's next leap, everything was fair game, with some at the company going so far as to suggest Apple look into developing a stand-alone camera, or even a car.
But once some of the more grandiose ideas began to dissipate, the Apple brain trust began focusing their attention on creating a tablet.
Source: http://www.networkworld.com/news/2012/091312-apple-iphone-262421.ht...
Edited 2013-03-11 15:20 UTC
This is just a generic ARM development board installed on a touch screen kit. It's not a phone, it has no battery, wifi, or bluetooth, how can it be an "iPhone prototype"? It isn't a prototype of nothing - or everything, depending on how you see the world.
There is nothing to identify this as coming from Apple, or even used by them. Actually it seems barely used at all. It's obvious that Apple had to start from something like this, there's nothing to be excited about.
It's an early prototype. I think your points are valid though, but I can imagine things like batteries, WiFi & Bluetooth are relatively "easy" and be added in a much later stage.
What Apple probably tried to find out first if they could run OS X on it at a reasonable speed and if you they could make a touchscreen.
Once that works it's easy to just add all the extras and see if you can fit it in a case.
This prototype is very interesting, because it comes from a period in time where Apple didn't really know where they and it would be going. Tablet, phone, size, specs.
Apple wasn't in to tablets or phones, unlike other companies who knew from the start what they would be making.
It's not a prototype. You can't buy an industrial engine, strap it to a wooden chassis and call it a Ferrari prototype. At most, this was just used to port the OS and test the GUI (but you could do the same on a PC with a touch screen attached).
It may have some historical interest, but as there isn't anything to identify it as being used from Apple, its value is null. Assuming it's not an hoax, of course.



