People from China, Vietnam, Cambodia pretty much the whole of South-East Asia make fake iPods. There is no official maker of them and its not just one person in a garage. Many fake iPods are sold each year and they get more advanced with each iPod model that comes out. As soon as the iTouch had a camera so did the fakes.
The thing is nobody really knows the answer to this question and nobody cares at the moment about finding the makers. They only want to stop people from selling them.
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