China is offering something that the West hasn't really been able to manage - cheap and easily available technology components and manufacturing facilities. This leads to a large number of imitation or fake products, but also holds promise for something more. Recently a writer at the New York Times brought up this same issue. And these are my thoughts on the matter: 
In any field people learn by copying. Like the author seems to be arguing, the phone is less amazing than what it represents. Electrical components and programing know-how are becoming common enough in china that we are seeing a new paradigm in the mobile industry that is just starting with personal computers - mass-produced customization. Could we do this in the US without a few million in capital? I doubt it.
Like google is doing with their cell phone "store", wouldn't it be great if you could pick-and-chose the design, features, hardware (see: battery-life) of your phone and have it drop-shipped to you in two days?
We then run into problems with software. Google and many other companies are trying to manage this by creating hardware independent games, programs and other mobile media that can be played on any device. The iPhone app-store is so popular because so many people are using iPhones. All of the apps there can be reprogrammed or "ported" onto pretty much any other mobile system.
Just like the iPhone was a hit, if someone creates a user-friendly platform with a strong connection with application developers and then offers a range of customizable options for the phone, we just may have another viral-hit mobile phone with it's own widget shop. And two years later, we will be ranting and raving about widgets instead of apps.
Nothing in the world is forever; especially in the world we live in today.
Image Source: http://blog.saimatkong.com/index.php/2008/01/01/iphone-clone-or-look-alike-from-china/
