The first copycats of Apple's handheld gizmo, the iPhone, have hit the shelves here, sporting many of the key features found on the much-hyped Apple original - but at a fraction of the cost.

One of the first off the blocks is the China-made HiPhone, which is going for $360, less than half the $800 to $1,500 asking price for the iPhone in the brisk grey market for parallel imports here.

Many more such 'iClones' are set to follow, as retailers in Sim Lim Square cash in on the Apple iPhone's delayed official arrival here.

The American firm has hit a roadblock in its talks with telecom operators here over the business model for its prized gizmo, which demands that telcos give Apple a cut of their revenues.

Meanwhile, the HiPhone is hunkering down and feeding the market.

It is similar in size to the iPhone, but does not have Wi-Fi for wireless surfing.

Its metallic frame does not look as polished as Apple's either.

But its on-board software mimics some of Apple's much-touted ease of use: For example, a user can zoom in or out of a picture by merely sliding his thumb and index finger on the screen.

The screen lock is also like the iPhone's in that one only has to slide a finger to activate it.

These copycat features are a boon for those who cannot afford the real thing or are unwilling to pay a premium for it.

Manager Chua Swee Leng, 34, who uses a China-made parallel-imported phone, said not everyone is brand-conscious enough to insist on an Apple or Nokia gizmo.

She said: 'If you go to Sim Lim and see the vendors selling parallel-imported China phones, you'll see budget-conscious users.'

The handful of retailers who have been promoting the HiPhone at Sim Lim Square said sales have been brisk. They declined to divulge their sales figures.

Indeed, when it comes to hitting the shelves, it has even beat another much-talked-about clone, the Meizu M8, which is due here this year.

The M8 also looks like Apple's iPhone, except that it runs on Microsoft Windows instead of Apple's software.

A much-awaited prototype of the M8 was shown this week at the yearly Cebit technology fair in Germany.

Apple, which has already seen copies of its other winning product - the iPod music player - go on shelves here, will not be impressed. When contacted, an Apple spokesman declined comment.

But fans are surprised at how far some firms would go to clone the iPhone.

Said businessman and iPhone owner Tan Lek Han, 33: 'I don't think people will confuse it with the real thing, but when I saw it, I was still surprised at how similar it was to the iPhone. It was a shock how they copied it.'

siewtha@sph.com.sg