Yes, it is a burnt iPhone 4! According to BGR, the brand new iPhone 4 caught on fire while plugged into to a computer using the USB cable! And when the customer brought the phone into the Apple store to try and get it fixe, but it is clear that it cannot be repaired. Apple says that the cause was defective USB port and not some a user error. BGR's source said that the phone became very hot and burned their hand. As you can see from the picture, the USB cord was very badly melted, but the iPhone wasn't as bad. Hopefully this is the first and the last case of an iPhone 4 catching fire.

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Source BGR