Found this on englishrussia.com
Recently a lot of fake iPhones came to life in Russia. They are often being sold in the manner of a big rush, something like “Look, bro, I don’t have enough money for my train/plane tickets or whatever, but I’ve got a real iPhone, look the battery is dead but when you turn it on pushing the power you can see an apple logo for a while, so just charge it and you have an iphone!”. So people fall on this and then bring such devices to the service centers where they are being disassembled, and what a surprise – inside there is no anything looking like iPhone inner stuff but only two batteries and a light bulb lighting an apple logo shadow when the power button is being pressed, also there is a bar of steel so that the phone can weigh like a real thing.
Not that it will hurt apple’s finacial situation but you would be pretty bummed if you payed good money for one of these.