Well, you don't know that. The images of the mp3 players he was selling basically look like a cheap knock off of the iPod shuffle. Apple spends a lot of money on their design and branding and it's their right to protect that investment, wouldn't you say?
In some cases with Asian factories the no-name product isn't even a "cheap knock-off", it's from the same factory with the same design.
Say MP3 Factory A gets an order for 1000 units/day but has capacity to do 1400/day. The factory still runs the extra 400/day and sells them as no-names.
Note: this is probably not the case any more with most proprietary electronics because competition is fierce enough that a factory would not want to lose a client. It does however flood the market with cheaper equivalents for all sorts of other products: clothes, shoes, wallets, etc.
Is there a canonical list anywhere of products, or at least product categories, for which good label arbitrage opportunities exist on Ebay and elsewhere? I'll pay $0.99 for filet mignon in a McDonald's wrapper any day.
At this point I wouldn't mind just killing every single lawyer on the planet.