IPod to IPhone on the Cheap in China

Apple’s (AAPL) sluggishness in China has forced impatient Apple fans to get creative.

Years before the iPhone officially hit the Chinese market, Apple fans purchased them from grey-market sellers. Some go overseas themselves to bring the devices back, and can pay just a little more than $10 to have them unlocked. Users without the necessary dual-currency credit cards have purchased iTunes gift cards at discounts online in order to buy iPhone apps, and enabled third-generation data services on their grey-market iPads by physically cutting SIM cards in half to fit the tablet’s smaller card slots.

Now, as Apple prepares the official launch of the iPhone 3GS with Wi-Fi, considered yesterday’s news in most other markets, a Chinese company called Yosion Technology is offering Chinese Apple fans another option.

Shenzhen-based Yosion has unveiled a product called the Apple Peel 520, a hack which can turn any iPod Touch into a cell phone. The Apple Peel attaches to an iPod Touch like any protective case, but functions as a dock, an extended battery and most intriguingly, a SIM card slot.

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