A CHINA-DEVELOPED device that turns an iPod Touch into an iPhone is set to officially debut domestically and is being readied to enter the US market, Shanghai Daily learned yesterday.

The Apple Peel 520 is already in large-scale production, and more than 40 Apple Peel models are in beta tests on domestic IT websites and by individual users, according to Chinese maker Yosion.

The Peel, which means skin in the Chinese language, will cost about US$60 in the US market, about one-seventh of the price differential between the iPhone 4 (US$699 for 32G) and iPod Touch (US$299 for 32G), according to its US distributor Go Solar USA.

"It's a radical new third-party device that adds voice and text messaging capabilities to the iPod Touch, for a fraction of the cost of an iPhone," Go Solar said.

"It's the choice if you're unwilling or unable to spend US$400 or more to upgrade to an iPhone 4 (from an iPod Touch)," the company said on its website.

It would seem to be a threat to Apple, which only two weeks ago released a new iPod Touch with added functions that mimic the iPhone 4, including high-definition Retina display and voice-call function FaceTime.

Apple China declined yesterday to comment on the Peel.

The Peel fits over the iPod Touch's case and adds a SIM (subscriber identity module) card, battery and dock connector, along with apps to handle phone calls and messages.

To use the Peel, people have to "jailbreak" their iPod Touch, which is easy to find how to do online - but legal experts said that may pose problems for users.

Until recently, the Peel was available only on Chinese auction websites and cost about 500 yuan (US$73). Then it was bought by Go Solar to distribute it in the United States.

For the domestic market, the Peel will debut "very soon," according to Yosion's website.

Yosion, founded by Pan Yong and Pan Lei, brothers in their 20s from Henan Province, didn't answer an e-mail yesterday seeking details about the kick-off.

Go Solar said that the Peel's battery would provide almost five hours of talk time and 120 hours of standby use. Yosion said it would probably include a built-in global positioning system.

In China, the release of Peel may require approval from industry regulators. The Ministry of Industry of Information Technology was not available to comment yesterday.