From The Apple Wiki
XInternalApps's Icon
XInternalApps on an iPhone 3GS

XInternalApps is an application which appears to launch other internal applications. It seems to launch applications such as WifiRoot and acts like a alternative. Its display name is "Internal Apps."

Usually present on older firmwares, this app is located in /AppleInternal/Applications/SwitchBoard/ It can be seen on SwitchBoard simply as another application. Opening it, however, leads to the application showing and displaying all of the applications in the directory /AppleInternal/Applications/InternalApps, giving the user the option to either quit back to SwitchBoard or launch an application. It was mainly seen on 4.3 factory firmwares such as Durango 8F3178a, but was seemingly removed in 5.1 ones. It is unknown exactly why Apple discontinued this application, but it was most likely due to the fact that XInternalApps was simply too similar to

Contents of The App

_CodeSignature			InternalApps-Settings.plist			      
blankicon.png			InternalApps.png
CodeResources			PkgInfo	unknownicon.png	
Info.plist			XInternalApps