An iPod Fag is someone who uses an iPod as if it were a smart phone, except for calling. Instead, iPod Fags use shitty phones like flip phones or the LG Cosmos l2.
John: Hey, is that the new iPhone 5s?
Fabio: No, it's just the iPod 5.
John: Then what do you use to call people?
Fabio: I use this shitty flip phone *shows flip phone*
John: Dude, you're such an iPod Fag.
Fabio: I know.