There is an interesting story in The Wall Street Journal that says a Chinese company has found a way to transform an iPod Touch into an iPhone.
A company called Yosion Technology has unveiled the Apple Peel 520 "attaches to an iPod Touch like any protective case, but functions as a dock, an extended battery and a SIM card slot."
For less than $60, users who are able to manipulate their iPods can install Yosion's calling and text-messaging application, put their SIM card into the slot and use a headset in order to make a call.
Apparently tech geeks give the Apple Peel 520 the thumbs up, with good signal strength and batter talk time for up to 4.5 hours. The disadvantage is that the plastic case may not be durable in the long term.
Nevertheless, if you buy an iPod Touch for $236, and an Apple Peel 520 for $57, it's still way cheaper than an iPhone from Unicom, a Chinese mobile phone network provider at $738, not including the $33 monthly fees.
Perhaps this is China's way of innovating -- by cheating others into finding cheaper ways to using its technology.