One forum user posted for help getting his new iPhone activated through iTunes. As it turns out, the iPhone was purchased in China just last week. After some photos of the phone were posted, it was clear that the phone is a very convincing knock-off of the actual iPhone. The packaging appears authentic, and at first glance the phone itself looks pretty similar. The proportions are slightly off, but the icons are identical except for the presence of a Penguin icon which launches a Chinese game:
Other differences can be seen, including the use of a standard USB plug on the bottom, instead of the usual dock connector. Other minor differences of type face and user interface placement would not be easily noticed by anyone who didn't own an iPhone themselves.