Because I love watching all the fanboys pop Apple boners and then yelling, "QUICK -- EVERBODY LOOK!" while pointing and laughing, this is allegedly an iPhone 4G prototype sitting atop an iPad prototype. As you can see, it looks like a blurry iPhone. Possibly with a black bezel instead of a chrome one. But what really baffles me is why they decided to print 'Eng' on part of the screen. You're losing it, Apple.
Photo of Apple's next-generation iPhone in the wild - sources [appleinsider]