there is a flee market here during the warmer months and they have been known to sell everything fake there, from jeans, purses to iPhones and iPads.
I went last year and they were selling an "i-phone 4" (notice the "-")
randomly i heard someone tell me the police are paid off in that town by the people that sell fake goods. makes sense tho because they have some pretty nice shit, plus a lot of stuff that "fell off the truck" and have been going at it for a few years.