Steve Jobs comments on the lost/stolen iPhone HD/iPhone 4G prototype that turned up online. Jobs thinks it's an amazing story - theft, buying stolen property, extortion... he thinks there may be sex in there somewhere!

Jobs got a lot of advice saying he should let it slide, shouldn't go after a journalist because they (allegedly!) bought stolen property and tried to extort Apple. Jobs would rather quit. He considers it a matter of their core values.

Video after the break!