Fake iPod shuffles and low-cost local MP3 players have caused iPod shuffle sales to stagnate in Taiwan, DigiTimes reports.

Apple is facing competition from "grey-market" iPod shuffles imported from Hong Kong, as well as cheap players made by local makers, the report explains.

It's a price war. While Apple charges NT$3,000 for its diminutive player in Taiwan, imported shuffles cost 10 per cent less, and local makers manufacture 1GB MP3 players for which they charge as little as NT$800.

Competition has also had an effect. While the shuffle has been available for months now, manufacturers including Samsung and Sony have launched similarly-specified players in recent months, attracting consumers to new devices.