The 2010 iPhone 4 Saga: The Untold Story of Apple’s Biggest Leak
- One night out and a forgotten phone turned into Apple’s worst nightmare.
- A $5,000 secret exposed Apple's next iPhone—before Steve Jobs could even blink.
- Police raids, media frenzy, and Gizmodo’s game-changing scoop—this story has it all.
In one of the most infamous leaks in tech history, the saga of the iPhone 4's exposure involved a lost prototype, secretive dealings, a bidding war, and Apple’s fierce pursuit to contain the fallout. Here’s how the story of Gizmodo’s iPhone 4 scoop unfolded, and the repercussions that followed.
Photo via Gizmodo // This is the inside story of the iPhone 4 leak that shook the world.
A Night Out Leads to a Lost iPhone
On March 18th, Apple software engineer Gray Powell went out to celebrate his birthday at Gourmet Haus Staudt, a bar in Redwood City, California. He was unknowingly carrying a prototype of Apple’s next-generation iPhone—cleverly disguised in a case resembling the current iPhone 3GS.
While enjoying the night, Powell updated his Facebook to share his fondness for the beer, completely unaware of what would happen next. He left the bar, leaving behind the device that would spark a media frenzy. The phone was picked up by another patron and eventually ended up in the hands of an unnamed individual, who soon realized it wasn’t an ordinary iPhone 3GS.
The Prototype Finds Its Way to Gizmodo
By the next morning, the iPhone prototype was remotely disabled by Apple. Its new owner, now aware of its significance, made attempts to return the phone, even contacting Apple’s customer service. However, Apple’s intense secrecy left their representatives clueless about the prototype’s existence, mistaking it for a cheap Chinese knockoff.
Frustrated and realizing the potential value of the device, the owner began shopping the iPhone 4 prototype around for $10,000, as initially reported by Engadget—though the figure was later redacted. After some back-and-forth between tech blogs, Gizmodo secured the device for $5,000, a figure confirmed by Jason Chen of Gizmodo and Nick Denton, the head of Gawker Media.
Gizmodo's Big Reveal
On April 19th, 2010, Gizmodo editor Jason Chen published a groundbreaking article titled, “This Is Apple’s Next iPhone.” In it, Chen detailed the device's unique design features, including a squared-off form factor, larger battery, and other changes. The news instantly spread like wildfire.
Apple's relentless pursuit of secrecy came crashing down. The authenticity of the iPhone 4 prototype was later confirmed by Apple itself when the company sent an official letter requesting the device’s return. But by then, the damage had been done.
The Controversy Around Checkbook Journalism
Gizmodo’s article ignited debates on media ethics and checkbook journalism. The website had paid for a device that could have been considered stolen, raising questions about their practices. Yet, Nick Denton, Gawker’s CEO, stood by the decision.
The event also sparked criticism over the treatment of Gray Powell, the engineer who had lost the iPhone. Gizmodo’s decision to reveal his identity—posting his photo and linking to his social media—was met with backlash from readers and industry professionals. Many considered it a step too far. As one commenter put it, “It was unnecessary, unjustified, and I hope this Gray Powell dude finds some way to tear Giz a new one for such cheap, pathetic behaviour.”
Apple’s Legal Response
Not long after Gizmodo’s reveall, on April 23rd, 2010, California police raided Jason Chen’s home, seizing multiple computers and servers. This action, carried out by the Rapid Enforcement Allied Computer Team (REACT), was reportedly initiated by Apple. The raid raised questions about the relationship between Apple and law enforcement, with some accusing Apple of overreach.
Chen’s home was broken into while he wasn’t present, and the police used force to enter, an event Gizmodo described in detail. The raid sparked outrage in the tech community, further fueling the debate over whether Apple was becoming too powerful and controlling.
Photo via iMore // The iPhone 4 went on to become one of Apple's most beloved iPhone upgrades.
Gizmodo's Revenge?
Adding a twist to the story, some saw Gizmodo’s leak as sweet revenge. Just a month prior, Apple had denied Gizmodo early access to an iPad review unit—a privilege granted to several other media outlets, leaving the site scrambling during the product’s launch. Gizmodo’s article on the iPhone 4 could be seen as a form of payback, especially after Apple’s previous slight.
Nick Denton promised readers a “real corker” of a story that would expose the details of the leak, and Gizmodo delivered. However, this didn’t mitigate the damage caused by revealing Powell’s identity, nor did it resolve the ethical concerns surrounding the acquisition of the prototype.
The Fallout: What Happened Next?
In the aftermath of the iPhone 4 leak, Gizmodo’s Jason Chen faced no legal repercussions for purchasing the prototype, with the San Mateo District Attorney deciding not to press charges. Steve Jobs wasn't happy. However, Brian Hogan, the individual who found and sold the phone, and his accomplice Sage Wallower, were both charged with misappropriation of lost property.
For Hogan, the ordeal didn’t end well. In a Reddit AMA, he admitted that after lawyer fees and fines, he ended up losing money on the deal. The charges against him amounted to 40 hours of community service and a $125 fine.
Meanwhile, Apple’s Gray Powell continued working at the company, keeping a relatively low profile after the incident. Despite the frenzy, he didn’t lose his job and eventually worked in Apple’s iOS security team. His story, though, remains a cautionary tale in the tech world.
Photo via Fandom.com // All models of iPhone up until 2023. While the iPhone 4 leak was devastating for Apple at the time, the iPhone has continued to evolve since.
Legacy of the Leak
The Gizmodo iPhone 4 leak became a pivotal moment in tech journalism. It highlighted the intense competition between tech blogs, the ethical gray areas of checkbook journalism, and the ever-growing secrecy surrounding Apple’s product releases.
As Jon Stewart aptly put it on The Daily Show, “You guys [Apple] were the rebels, man, the underdogs… But now, are you becoming The Man?” His comments reflected a broader sentiment at the time—that Apple’s heavy-handed tactics were starting to resemble the very “Big Brother” image it once sought to destroy.
Today, the iPhone 4 leak is etched in tech history, a defining moment for both Apple and the blogs that cover it.
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