We have spoken many times previously about counterfeit iPods. While the first iPod forgeries were rather crude, production continues to improve and soon it will be very difficult to tell the difference between the real and the fake.
iPodGear published photos of a fake iPod nano and a shuffle. The following is a shuffle which now contains an Apple logo.

So far this is the best imitation. But to the uninitiated it could easily be mistaken for the real thing.