A man claims to have seen an Apple employee on the subway in San Francisco, possible going home from work, sporting the yet to be released iPhone 5. This is the first time that the next generation iPhone has been spotted in the outside world.
As you can see in the image, the person seems to be protectively guarding the device he has in his hands. The man claims that it was unlike any iPhone or iPod touch he had seen before because it was thin, tapered and had a bigger screen.
Apple does real world tests before it releases a device for the public. It is possible that this devices, possibly an iPhone 5, was also being tested out by this worker while riding on the subway. Given the antenna issues Apple has had with the iPhone 4, it looks like Cupertino would not want any issue of that sort arising in their latest iPhone.
The picture does look legitimate and we only have to wait for a short while before Apple itself gives us the finer details on its next generation iPhone. For now we know that a release is expected for September and it makes all the logic for hardcore real world iPhone 5 testing to be underway.