It may be surprising, but that is a modified iPod, with a working dock and speaker. "Dr. Grymm" designed the steampunk modification, and has more photos on his Flickr set.
Inspired by Mary Shelley’s Frankenstein, he has used a motley mix of materials (old typewriters, formed brass and steel, leather and quartz crystals) to put together a contraption that you wouldn’t have envisaged even in your wildest dreams – a gigantic eye popping out from the iPod controller section, and a crystal ball (?) replacing the comparably delectable screen; all resting on a steampunk victrola base with a blaring horn (we certainly hope there are no eerie tunes played for the additional effect). Good news, though. It plays like your regular iPod so you can handpick your own tunes.