Special case converts iPod touch into fully-fledged iPhone?

Up until the launch of the iPhone 4, the aesthetic differences between the iPhone 3GS and the iPod touch have been minimal. The features are largely similar too, except for that whole cellular “phone” part of the equation. Well, you can change all that with a simple new case. At least, that’s what it sounds like with the Apple Peel 520. In effect, you can slap this case onto an iPod touch and it will convert it into a functional Apple iPhone, complete with voice calling and text messaging over a cellular network.

This isn’t VoIP, folks; it’s a “real” phone with a real SIM card. Inside the Apple Peel 520 case are an Infineon baseband chip and an extra 800mAh battery. It doesn’t seem to do GPRS for data, though, so you’re stuck with Wi-Fi for that functionality. It could be vaporware for all we know, but it sounds like the Apple Peel 520 case for the iPod touch will be made available in China this week for $44 to $74 or so.