A blog site focusing on latest gadgets claims that it accidentally found the fourth generation iPhone on the floor of a bar in San Jose, California. It said that the smartphone was wrapped in a standard third generation iPhone case.

"Right now we don't have a ton of info on the device in question, but we can tell you that it apparently has a front-facing camera, 80GB of storage, and isn't booting at this point," said the site's report on the device found.

A Boy Genius Report has supported the claim and said that the revamped handset can be launched in June in which the mobile operator, AT&T will be involved. A Twitpic posted in February also has striking resemblance to the pictures posted by Engadget. Some blogs claim that the images are of an iPhone counterfeit developed in Japan.

Another set of images released on the net from a site in Chinese also looks like the photos of a new iPhone supporting the claims that it might be a Japanese counterfeit. Apple CEO Steve Jobs said recently that an upgraded version of mobile OS will be leased by this summer. Many expect the timing to be right for launching the new phone.