Well the truth is the wealth wasn't distributed evenly in china and most of the people were too poor to own a 500 USD phone. That's why they will tend to go for the cheap home grown phone. For all those fake stuff, I think they will keep coming up. Even for phones, they copy the same exactly design and just changing the names on the phone. Problem is they their technology wise was still not up to par (for phones) that's why they can only copy the older style phone.