Interestingly this prototype was wrapped in a case to make it look like the previous version of the iPhone, and the major problem with iPhone 4 is that when you touch the phone directly, as most end-users would touch it, you lose signal. The phony casing probably mitigated this problem, so maybe that's what happened there.
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Often enough that one of them lost a prototype. Knowing how tight Apple is with unreleased products, that means very often.
Interestingly this prototype was wrapped in a case to make it look like the previous version of the iPhone, and the major problem with iPhone 4 is that when you touch the phone directly, as most end-users would touch it, you lose signal. The phony casing probably mitigated this problem, so maybe that's what happened there.