山寨 = shan1 zhai4 = literally “mountain stronghold” in reference to historical warlord holdouts that were outside of government control. A “shanzhai” edition product thus refers to products outside of government regulations that are widely reflected in the numerous fake and knockoff electronics/commodities made in China today. The term “shanzhai” can also refer to things that are improvised or home-made and are generally crude in both form and function (the closest English equivalent would be “ghetto”).

http://www.chinasmack.com/pictures/funny-and-clever-chinese-shanzhai-brands/