From the eBay listing:

Here is a quite rare and collectable example of iPhone prototypes, one even running a beta OS. Only one of the phones works however. Neither unit says "iPhone" on them anywhere, or list the storage capacity which is interesting. I did some research on the serial numbers, it appears they were both manufactured about 6 months before the release of the iPhone.

-Powers on OK - GSM service works
-Plastic matte screen (see pics)
-Serial number YM649xxxxxx which corresponds to a factory in China, manufactured week 49 of the year 2006.
-Runs iPhone OS 03.06.01_G (iPhone Launch OS 1.0 was version 03.11.02_G)
-Good cosmetic condition (via twitter@davemark)