Legit Chinese brands such as Ningbo Bird are furious about fakes in the cutthroat world of low-end handset makers.

While China is the world's largest market for handsets, domestic brands such as Ningbo Bird and Amoi are struggling amid intense price competition from local rivals. But to add insult to injury they are doing knock offs that are specifically Chinese products.

While many think of the Chinese nicking designs like the iPhone, which is copied in the Hiphone, the Ningbo Bird is probably one of the most copied handsets in the People's Republic. One tiny manufacturer builds the phones at four small assembly plants owned by a partner located in the southern boom-town of Shenzhen. He has sold hundreds of handsets a month and is targeting farmers, migrant workers and other low-income users to expand his sales network.

Ningbo Bird reported a loss of 34 million yuan ($4.94 million) for the first quarter, citing fierce competition in the local market, one that it once dominated just a few years ago.