It is true that you can buy an iPhone running Android and not iOS. The phone comes unlocked and can be bought for about $300. The phone features a 700MHz processor, a 5 megapixel rear camera, a 0.3 megapixel front camera, dual SIM support, and a 3.7 inch display.
Of course, Apple is having a fit over an iPhone running Android. This particular iPhone is not manufactured by Apple but by a company by the name of IGB Eletronica domiciled in Brazil. IGB was formed after the restructuring of a Brazilian electronics firm Gradiente Eletronica. Gradiente had applied for exclusive rights to the name iPhone in Brazil in 2000. Gradiente claims that it had foreseen the revolution of smartphones in 2000 long before Steve Jobs ever dreamed of iPhone.
The regulatory body that grants trademarks in Brazil is called the Institute of Industrial Property (INPI). INPI has ruled that the rights to the iPhone name do not belong to Apple. INPI does not have the authority to stop Apple from selling its own iPhones in Brazil. However IGB can sue to stop Apple from using the name iPhone in Brazil.